On 3/1/16, Lawrence Company sold 6% bonds having a maturityvalue of 300,000 at a...

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Accounting

On 3/1/16, Lawrence Company sold 6% bonds having a maturityvalue of 300,000 at a price which provides the bondholders with a8% yield. The bonds are dated 3/1/21 with interest payablesemiannually on 3/1 and 9/1 of each year. The bonds are callable at101 any time after 1/1/17.
a. Prepare the amortization table and all journal entriesrequired in 2016.
b. On 6/1/18, Lawrence called the bond and retired them. Prepareall journal entries required in 2018.

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Par value of Bonds 300000 Cash interest paid 3000006612 9000 Annuity PVF for 15 yrs at 8 17292 PVF at 8 for Year15 03083 Present value of Bonds 92490 Present value of Interest 155628 Issue price 248118 Amort Chart Date Cash Interest Discount Unamortized Carrying Value Interest expenses Amortized See Answer

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In: AccountingOn 3/1/16, Lawrence Company sold 6% bonds having a maturityvalue of 300,000 at a price...On 3/1/16, Lawrence Company sold 6% bonds having a maturityvalue of 300,000 at a price which provides the bondholders with a8% yield. The bonds are dated 3/1/21 with interest payablesemiannually on 3/1 and 9/1 of each year. The bonds are callable at101 any time after 1/1/17.a. Prepare the amortization table and all journal entriesrequired in 2016.b. On 6/1/18, Lawrence called the bond and retired them. Prepareall journal entries required in 2018.