Journal entries to record partial retirement on September

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Question - On June 30, 2019, ABC Corp. issued $500,000 in long-term bonds. The bonds will mature in 10 years and have a stated interest rate of 8%. The market rate at time of issue was 10%. The bonds pay interest semiannually on June 30 and December 31. On September 30, 2021, Helmer decided to retire 20% of the bonds. At that time, the bonds were selling at 98. Helmer follows IFRS.

Required -

1. Entries for the issuance of the bonds and payments of interest to June 30, 2021.

2. Journal entries to record the partial retirement on September 30, 2021.

Reference no: EM132744002

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