On February 1, 2019, Ellison Co. issued nine-year callable bonds with a face value of $250,000,000...

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Accounting

On February 1, 2019, Ellison Co. issued nine-year callable bondswith a face value of $250,000,000 and a stated interest rate of8.5%, payable semiannually on July 1 and January 1. The bonds weresold to yield 8%. Table values are:
a. Calculate the issue price of the bonds.
b. Record the issuance on February 1, 2019.
c. Prepare the journal entries for the interest expense andpayments for 2019, 2020, 2021, 2022 and 2023. (you will need toprepare amortization schedule)
d. Assume all of the bonds are called on January 1, 2024 at102. Prepare the journal entry to record the call.

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a Face Value 25000000000 Semiannual Coupon Rate 8502 425 Semiannual coupon Payment 1062500000 Rate 82 4 Period 92 18 Current Price PV41810625000250000000 25791206061 b Debit Credit Cash 25791206061 Premium on bonds Payable 791206061 Bonds Payable 25000000000 c Effective interest amortization table A B C D E Semiannual Interest PeriodEnd Cash Interest Paid 425 x 250000000 Bond Interest Expense 4 x Prior E Premium AmortizationB A Unamortized Discount Prior See Answer

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