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Prepare Journal Entries to Record the Following Transactions Relating to Long-Term

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Prepare journal entries to record the following transactions relating to long-term bonds of Kirby, Inc. (Show computations.)(a) On June 1, 2013, Kirby, Inc. issued $5,000,000, 6% bonds for $4,897,000, which includes accrued interest. Interest is payable semiannually on February 1 and August 1 with the bonds maturing on February 1, 2023. The bonds are callable at 102.(b) On August 1, 2013, Kirby paid interest on the bonds and recorded amortization. Kirby uses straight-line amortization.(c) On February 1, 2015, Kirby paid interest and recorded amortization on all of the bonds, and purchased $3,000,000 of the bonds at the call price. Assume that a reversing entry was made on January 1, 2015.


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