on April 1 2018, company sold 10,000 bonds ($1,000 face value) at 11% semi-annually. they are...

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on April 1 2018, company sold 10,000 bonds ($1,000 face value)at 11% semi-annually. they are due April 1 2028.
proceeds from the bonds were 9,156,946 and their coupon datesare april 1 and october 1
on april 1 2020 , the company bough back 6,000 bonds for5,331,000 cash.
- prepare journal entries for the bonds from sale (april 1, 2018to the end of year 2020 (12/31/20)
- what are the 12/31/20 balances in the related bonds, discount,and interest payable (from T accounts)
- what amounts related to the bonds will appear in the incomestatement for 2020 and how will they be reported/classified?

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4.3 Ratings (794 Votes)

1 Journal Entries Date Accounts Title Debit Credit 412018 Cash 9156946 Discount on Bond issue 843054 Bonds Payable 10000000 being issue of bond 1012018 Interest exp 5921527 Cash 550000 Discount on Bond issue 421527 84305420 being payment of interest 12312018 Interest exp 29607635 Interest payable 275000 See Answer

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