Hill Corporation issued $2,700,000 of 7% bonds at 97 on January 2, 2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On March 31, 2022, Hill recalls the bonds at the call price of 110 plus accrued interest. Required: Prepare the journal entries to record the reacquisition (recall) of Hill's bonds.
Hill Corporation issued $2,700,000 of 7% bonds at 97 on January 2, 2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On March 31, 2022, Hill recalls the bonds at the call price of 110 plus accrued interest. Required: Prepare the journal entries to record the reacquisition (recall) of Hill's bonds.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Hill Corporation issued $2,700,000 of 7% bonds at 97 on January 2, 2019. Interest is paid semiannually on June 30 and
December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of
amortization. On March 31, 2022, Hill recalls the bonds at the call price of 110 plus accrued interest. Required: Prepare the
journal entries to record the reacquisition (recall) of Hill's bonds.
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