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2. On March 1, 2006, Johnson Inc. issued $425,000.00 of 8.00% annual interest rate bonds. Intere...

2. On March 1, 2006, Johnson Inc. issued $425,000.00 of 8.00% annual interest rate bonds. Interest is paid every six months and
will mature in five years. The market rate for these bonds is 7.00% annual interest rate.  
(The calendar and fiscal year-end dates are the same)
Create the bond payment spreadsheet and record the journal entries
for March 1, 2006, December 31, 2006 and February 28, 2007 for Johnson, Inc.
The bond was called on April 1, 2009 for $390,000.00 (check figure: gain on called bond = $42,805.29)
Record the journal entry for April 1, 2009 for Johnson, Inc.
business   accounting   
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Answer #1

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