TreeTop Corporation Had Issued $5,000,000 of 10-Year Bonds with a 12

question 90

Essay

TreeTop Corporation had issued $5,000,000 of 10-year bonds with a 12% stated rate and interest to be paid annually. They were issued on January 1, 2008 at 96 and have been amortized using the straight-line method through December 31, 2014. On June 30, 2015, TreeTop retired all the bonds by exercising the call feature. The call price was 101.
Required:
Prepare the journal entry for the call of the bonds on June 30, 2015. (Remember to amortize the discount and update the book value of the bonds for the half-year prior to retirement).

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Definitions:

Critical Environmental Events

Significant occurrences within the environment that have the potential to impact human life, ecosystems, or business operations.

Environmental Analysis Process

A strategic tool used for identifying the internal and external elements that can affect an organization's performance.

Competitive Intelligence

The collection and analysis of information about competitors, market trends, and external environments to support strategic decision-making and maintain a competitive edge.

Business Intelligence

The applications and technologies for gathering, storing, analyzing, and providing access to data to help users make better business decisions.