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Authorization was provided to Metal Imports on December 31, 2019, to issue $7,500,000 face value...

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Accounting

Authorization was provided to Metal Imports on December 31, 2019, to issue $7,500,000 face value of 6%, 30-year bonds. The bonds were issued at par, plus accrued interest on March 1, 2020. The bond interest payment dates are June 30 and December 31. Metal may call the bonds at any time at 102.

Required: (A) Prepare the journal entry to record the issuance of the bonds on March 1, 2020.

(B) Prepare the journal to record the first interest payment on the bonds at June 30, 2020.

(C) What is the amount of bond interest expense reported in Metal Imports' 2020 income statement relating to these bonds?

(D) What is the amount of bond interest payable appearing in Metal Imports' balance sheet at December 31, 2020, with respect to these bonds?

(E) Metal exercises the call provision and retires one-third of the bond issue on July 1, 2021. Prepare the journal entry to record this transaction on July 1, 2021

Enter your solution in the space below or upload your response in an Excel file. Show your work.

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