2. An $800,000 bond, Issued at 105, is a 10 year Bond, and was issued on...

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2. An $800,000 bond, Issued at 105, is a 10 year Bond, and was issued on 1/1/2010 Called on 1/1/2014 at 102, Unamortized Disc

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Answer 1

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2) Journal Entries:

Date	Acc Title	Debit $	Credit $
1/1/2014	Bond Payable	800000
	Loss on retirement of Bond	60000
	Discount on Bond Payable		44000
	Cash		816000	800000*1.02
	(bond retired @ 102 and Loss recorded)

1/1/2014	Cash	840000		800000*1.05
	Premium on Bond Payable		40000
	Bond Payable		800000
	(bond issued @ 105 and Premium recorded)

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2. An $800,000 bond, Issued at 105, is a 10 year Bond, and was issued on...

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