Resto Corporation has authorized to issue$5,000,000 of its 8%, 5-year bonds On January 1, 2019, the bonds issued on 28/02/2019 plus accrued interest when the effective interest rate10%. The bond's interest is quartile onApril1, July 1, October 1, and January 1. On July 1, 2020, after paid interest Resto purchased 40% of its issued bonds on the open market at $1,500,000 and canceled them. Resto uses the effective interest rate method for the amortization of bond premiums and discounts.

1- Journalize the bonds issued on February 28, 2019?

2- Journalize all interest entries during 2019?

3- Journalize the entry for redemptions of bonds on July 1, 2020 and entries at 31, December 2020

Answer rating: 100% (QA)

Resto Book value of bonds 500000000 Coupon rate 800 Quarterly rate 200 Quarterly Interest 10000000 Market rate 1000 Quarterly Market rate 250 Issue price of bonds See C D ECD Period Particulars Cashfl... View the full answer