(Entries for Bond Transactions—Straight-Line) Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1,...

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(Entries for Bond Transactions—Straight-Line) Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1,...

(Entries for Bond Transactions—Straight-Line) Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Dion Company uses the straight-line method of amortization for bond premium or discount.

A) Journalize the retirement of the bond at maturity

Assume the same information as Celine Dion Company, except that Celine Dion Company uses the effective-interest method of amortization for bond premium or discount. Assume an eff ective yield of 9.7705%.

B)Journalize the retirement of the bond at maturity

business accounting

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Answer 1

Answer #1

Answer is given below

Bond will be redeemed at face value of $600,000 on maturity Hence there will be no profit or loss on redemption Note : Entry

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Answer 2

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