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Check figure: Cardinal Company, 5/1/y2 gain on redemption of $161,971 BOND PROBLEM 1 Cardinal...

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Accounting

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Check figure: Cardinal Company, 5/1/y2 gain on redemption of $161,971

BOND PROBLEM 1 Cardinal Company 6/30/y1, $2,000,000 face value bonds, with an 11% coupon rate, are issued to yield 10%. These are 20- year bonds, and they pay interest on June 30 and January 1. These bonds were issued for $2,171,600. On May 1, y2, $1,300,000 face value bonds are redeemed at 96. This company has a December 31 year end. Please record: 6/30/y1 issuance of the bonds. 12/31/y1 accrual of interest. 1/1/y2 payment of interest 5/1/y2 payment of interest for the bonds being redeemed as well as the redemption of the bonds

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