East Liberty Corp

question 112

Essay

East Liberty Corp.received authorization on December 31,2017,to issue $7,000,000 face value of 6%,ten-year bonds.The interest payment dates are June 30 and December 31.All the bonds were issued at par,plus accrued interest,April 1,2018.The bonds are callable by East Liberty at any time at 102.
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Required
East Liberty exercises the call provision and retires one-half of the bond issue on July,1,2020.Determine the impact on the accounting equation of the journal entry to record this transaction on July 1,2020.

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Definitions:

First World War

A global conflict that took place from 1914 to 1918, primarily in Europe, involving many of the world's great powers.

Great Migration

The movement of over six million African Americans from the rural Southern United States to the urban Northeast, Midwest, and West from about 1916 to 1970, seeking better economic opportunities and escaping racial discrimination.

Economic Devastation

A situation in which a significant event, such as a natural disaster or financial crisis, severely disrupts and damages an economy.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.