There are three independent situations summarized below.In all three cases the bonds are sold on January 1,2011 and the issuing company has a December 31 year-end.In situation three,the bonds were all repurchased at par on January 1,2015.
Requirement:
Prepare journal entries to record:
a.The issuance of the three bonds.
b.Payment of interest and related amortization on December 31,2011.Prepare the amortization table to help you.
c.Retirement of the situation 3 bond on January 1,2015.
Definitions:
Paleozoic
An era in the geological timescale, occurring between 541 and 252 million years ago, known for significant developments in life, including the Cambrian explosion.
Geologic Timescale
A chronologic subdivision of geologic time depicting the sequence of geologic events, including those represented by fossils; ages of boundaries are assigned through numeric dating of key rock units.
Earth Materials
Substances that constitute the Earth, including rocks, minerals, soil, and water.
Density
A measure of how much mass is present per given volume of a substance.
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