On January 1, 2014, Housen Company issued 10-year bonds of
$500,000 at 102. Interest is payable...
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On January 1, 2014, Housen Company issued 10-year bonds of$500,000 at 102. Interest is payable on January 1 and July 1 at10%. April 1, 2015, Housen Company reacquires and retired 50 of itsown $1000 bonds at 98 plus accrued interest. The fiscal period forHonsen Company is the calendar year.
Prepare entries to record (1) the issuance of the bonds,(2) the interest payments and adjustments relating to the debt in2014, (3) the reacquistion and retirement of bonds in 2015, and (4)the interest payments and adjustments relating to the debt in 2015.Assume the premium or discount is amortized on a straight-linebasis.
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