
(a)
Callable Bonds: Callable bonds are the bonds for which the issuer can make a call to buy back the bonds before its maturity.
Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance.
Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer.
Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.
Accounting rules for journal entries:
- To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
- To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.
To prepare: The
(b)
To prepare: the journal entry of the redemption of bond.
(c)
To prepare: the

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Chapter 15 Solutions
Accounting Principles - Standalone book
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