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on January 1, 2014 baseline Corp. issued $20,000,000 of 12 %, Twenty-year bonds at 102. the...

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Accounting

on January 1, 2014 baseline Corp. issued $20,000,000 of 12 %,Twenty-year bonds at 102. the bonds are callable at 105. Intereston the bond is payable annualy. Baseline uses the Stright-linemethod to amortize bond premium or discount. On january1, 2018,Baseline Called 5,000,000 of the issue and retired the bond.

Required

a) prepare the journal entry to record the issuance of the bondson January 1, 2014

b) prepare the journal entry to record the retirement of thebonds on january 1, 2018.

Answer & Explanation Solved by verified expert
3.6 Ratings (265 Votes)
All working forms part of the answer Requirement a Working Working Total A Face Value 20000000 B A x 102100 Issue value 20400000 C B A Premium on Bonds payable 400000 Journal Entry Date    See Answer
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