Early Retirement A company issued a 20-year bond on 1/1/24. The face value of the bond was 1,000 but it was issued at 997. The bond included a callable feature, allowing the company to buy back the bond early at 102%. On 1/1/30, the company exercises the call feature; on this date the carrying value of the bond was 998. 6. Prepare the journal entry for calling the bond.
Early Retirement A company issued a 20-year bond on 1/1/24. The face value of the bond was 1,000 but it was issued at 997. The bond included a callable feature, allowing the company to buy back the bond early at 102%. On 1/1/30, the company exercises the call feature; on this date the carrying value of the bond was 998. 6. Prepare the journal entry for calling the bond.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer must be table format or i will give down vote
Transcribed Image Text:Early Retirement
A
company issued a 20-year bond on 1/1/24. The face value of the bond was 1,000 but it was
issued at 997. The bond included a callable feature, allowing the company to buy back the bond
early at 102%.
On 1/1/30, the company exercises the call feature; on this date the carrying value of the bond was
998.
6. Prepare the journal entry for calling the bond.
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