Lakeshore Gelato issued $1,200,000 of 7% bonds at 99 on January 2, Year 1. 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, Year 4, Hill recalls the bonds at the call price of 108 plus accrued interest. Required: Prepare the journal entries to record the reacquisition (recall) of Lakeshore Gelato's bonds.

Lakeshore Gelato issued $1,200,000 of 7% bonds at 99 on January 2, Year 1. 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, Year 4, Hill recalls the bonds at the call price of 108 plus accrued interest. Required: Prepare the journal entries to record the reacquisition (recall) of Lakeshore Gelato's bonds.

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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