Q9: On Dec. 31, 2020, Zallaq company issues callable bonds that have a $700,000 par value, mature
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Question:
Q9:
On Dec. 31, 2020, Zallaq company issues callable bonds that have a $700,000 par value, mature in 10 years, and pay 5% interest semiannually on June 30 and December 31. The bonds are sold at $600,00o. On Dec. 31, 2021. the company called on the bonds and paid $589,000 to outstanding bondholders.
Required:
Prepare journal entries to record:
1. The bonds issuance on Dec. 31 2020.
2. The semi-annual interest payment.
3. The bonds retirement .
CLEARLY INDICATE THE DEBITS & CREDITS Example:
XYZ Company pays $10,000 cash to purchase land Answer:
Dr. Land 10.000
Cr . Cash 10.000
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
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