EXTRA CR company issues a 20 year bond with a face value of $1,000,000 for $950,000 cash at issuance. The terms of the bond require semi annual interest payments at the stated annual interest rate of 3%. EXTRA CR company and the bond holder agree to an early payment of the bond for $975,000 after 30 interest payments were made by EXTRA CR company. Prepare the journal entry to record the early retirement of this bond and include on your PDF upload.

EXTRA CR company issues a 20 year bond with a face value of $1,000,000 for $950,000 cash at issuance. The terms of the bond require semi annual interest payments at the stated annual interest rate of 3%. EXTRA CR company and the bond holder agree to an early payment of the bond for $975,000 after 30 interest payments were made by EXTRA CR company. Prepare the journal entry to record the early retirement of this bond and include on your PDF upload.

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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Hi, I need help entering the following two journal entries. Thank you.
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