Albee, Inc. issued $100,000 face value bonds payable Sept $92,278. The bonds carried a stated annual interest rate of 8%, payable semi-annually on September 1 and March 1 of each year. On September 1, 2018, the effective (market) rate of interest was 10%. On March 1, 2020, after recording interest and amortization, Albee called in 40% of the outstanding bonds, at a call price of 99. Albee, Inc. uses the effective interest method to account for the bonds. REQUIRED: A) B) Prepare an amortization table for the bonds, from September 1, 2018 through September 1, 2020. Prepare all of the journal entries that Albee, Inc. should record for the bonds, from September 1, 2018 through September 1, 2020.

Albee, Inc. issued $100,000 face value bonds payable Sept $92,278. The bonds carried a stated annual interest rate of 8%, payable semi-annually on September 1 and March 1 of each year. On September 1, 2018, the effective (market) rate of interest was 10%. On March 1, 2020, after recording interest and amortization, Albee called in 40% of the outstanding bonds, at a call price of 99. Albee, Inc. uses the effective interest method to account for the bonds. REQUIRED: A) B) Prepare an amortization table for the bonds, from September 1, 2018 through September 1, 2020. Prepare all of the journal entries that Albee, Inc. should record for the bonds, from September 1, 2018 through September 1, 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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