Excalibur Incorporated issued $170,000 of 5%, four-year bonds on January 1. The bonds pay interest semiannually on June 30 and December 31. They were issued at par value. Prepare the journal entry the Corporation will record on their books if they repurchase the bonds on January 1 two years later at 101% after the semi-annual interest payment was made. (Hint: use the Account List - click to pop open to help you with your journal entries) Date 01/01 Description to record the repurchase of bonds. Debit Credit

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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Excalibur Incorporated issued $170,000 of 5%, four-year bonds on January 1. The bonds pay
interest semiannually on June 30 and December 31. They were issued at par value.
Prepare the journal entry the Corporation will record on their books if they repurchase the bonds on
January 1 two years later at 101% after the semi-annual interest payment was made. (Hint: use the
Account List - click to pop open to help you with your journal entries)
Date
01/01
Description
to record the repurchase of bonds.
Debit
Credit
Transcribed Image Text:Excalibur Incorporated issued $170,000 of 5%, four-year bonds on January 1. The bonds pay interest semiannually on June 30 and December 31. They were issued at par value. Prepare the journal entry the Corporation will record on their books if they repurchase the bonds on January 1 two years later at 101% after the semi-annual interest payment was made. (Hint: use the Account List - click to pop open to help you with your journal entries) Date 01/01 Description to record the repurchase of bonds. Debit Credit
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