Homework Answers
Answer
--Journal entries asked
| Date | Accounts title | Debit | Credit |
| 01-Jan-20 | Cash | $4,360,800 | |
| Premium on Bonds Payable ($4360800 - 4000000) | $360,800 | ||
| Bonds Payable | $4,000,000 | ||
| (to record issuance of bonds) | |||
| 01-Jan-23 | Bonds Payable (Face value) | $4,000,000 | |
| Premium on Bonds Payable (unamortised) | $234,520 | ||
| Gain on redemption of bonds ($4234520 - 4080000) | $154,520 | ||
| Cash ($4000000 x 102/100) | $4,080,000 | ||
| (to record calling of bond at 102) |
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Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of...
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