Reference no: EM13793221
Bonds issued at a premium. On January 1, 20x2, Jury Corp. issued $100,000 of $1,000 face value, 12%, 10 year bonds. The bonds pay interest annually, each December 31. On the date of issuance, the market rate of interest was 10%. Jury uses the effective interest method to calculate and report interest expense on the bonds.
Required:
a. Calculate the issue price of the bonds.
b. Record the issuance of the bonds.
c. Construct a loan amortization schedule for the bonds.
d. Make all journal entries related to the bond issue for the years 2002 and 2003.
e. Jury called the bonds on May 1, 20x4 at 103. Record the early extinguishment of debt.
f. What would the gain or loss be on the bonds that were called on May 1, 20x4, if Jury had been using the straight-line method to calculate interest expense? Record the early extinguishment of debt under this assumption.
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: Bonds issued at a premium. On January 1, 20x2, Jury Corp. issued $100,000 of $1,000 face value, 12%, 10 year bonds. The bonds pay interest annually, each December 31. On the date of issuance, the market rate of interest was 10%. Calculate the issue p..
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