Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on October 1, 2020, when the market rate of interest wasa 8 percent. These bonds mature on October 1, 2025, and are callable at 102.50. Maple Management Inc. pays interest each April 1 and October 1. On October 1, 2021, when the bonds' market price is 104.50, Maple Management Inc. retires the bonds in the most economical way available. Required Record the payment of interest and the amortization of the bond discount at October 1, 2021; also record the retirement of the bonds on that date. Maple Management Inc. uses the effective-interest method to amortize the bond discount. COD Record the entry for the payment of interest and the amortization of the bond discount at October 1, 2021. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest whole dollar.) Journal Entry Accounts Debit Credit Date 2021

Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on October 1, 2020, when the market rate of interest wasa 8 percent. These bonds mature on October 1, 2025, and are callable at 102.50. Maple Management Inc. pays interest each April 1 and October 1. On October 1, 2021, when the bonds' market price is 104.50, Maple Management Inc. retires the bonds in the most economical way available. Required Record the payment of interest and the amortization of the bond discount at October 1, 2021; also record the retirement of the bonds on that date. Maple Management Inc. uses the effective-interest method to amortize the bond discount. COD Record the entry for the payment of interest and the amortization of the bond discount at October 1, 2021. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest whole dollar.) Journal Entry Accounts Debit Credit Date 2021

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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