Nates corporation issued $1,500,000 of 11% of bonds at 97 on Jan 2,2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On April 30, 2021, Balboa recalls the bonds at the call price of 105 plus accrued interest. Journal entries for 2021 would include:
Nates corporation issued $1,500,000 of 11% of bonds at 97 on Jan 2,2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On April 30, 2021, Balboa recalls the bonds at the call price of 105 plus accrued interest. Journal entries for 2021 would include:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Nates corporation issued $1,500,000 of 11% of bonds at 97 on Jan 2,2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On April 30, 2021, Balboa recalls the bonds at the call price of 105 plus accrued interest.
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