On Dec. 31, 2020, Zallag company issues callable bonds that havea $700,000 par value, mature in 10 years, and pay 5% interest semiannually on June 30 and December 31. The bonds are sold at $600,000. On Dec. 31, 2021, the company called on the bonds and paid $589,000 to Outstanding bondholders. Prepare journal entries to record: 1. The bonds issuance on Dec. 31 2020. 2. The semi-annual interest payment. 3. The bonds retirement.
On Dec. 31, 2020, Zallag company issues callable bonds that havea $700,000 par value, mature in 10 years, and pay 5% interest semiannually on June 30 and December 31. The bonds are sold at $600,000. On Dec. 31, 2021, the company called on the bonds and paid $589,000 to Outstanding bondholders. Prepare journal entries to record: 1. The bonds issuance on Dec. 31 2020. 2. The semi-annual interest payment. 3. The bonds retirement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Dec. 31, 2020, Zallag company issues callable bonds that havea $700,000 par value, mature in 10 years, and pay 5% interest semiannually on June 30 and December 31. The bonds are sold at $600,000. On
Dec. 31, 2021, the company called on the bonds and paid $589,000 to Outstanding bondholders.
Prepare
1. The bonds issuance on Dec. 31 2020.
2. The semi-annual interest payment.
3. The bonds retirement.
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