On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $5,000,000...
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Accounting
On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $5,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%.
a) Determine the issue price of the bond on January 1, 2020 and make the journal entry to record the sale. .
b) Prepare the amortization table for 2020, 2021 and 2022.
c) Make the entry to buy back the bond on December 31, 2022 at the different prices below:
(i) $5,500,000
(ii) $3,500,000
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