Solution-Make the entry for the interest payment on january

Make the entry for the interest payment on january

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Reference no: EM132835327

On July 1, 2020, Davis Corp. issued $ 800,000 par value, 10%, 10-year bonds, with interest payable semi-annually on January 1 and July 1. The bonds were issued for $ 908,722. On January 2, 2022, Davis offered to buy back the bonds at 103. Forty percent of the bondholders accepted the offer. Davis uses the effective-interest method of amortizing premium or discount.

Instructions

Problem a) make the journal entry to record the bond issuance along with the amortization table.

Problem b) make the adjusting entry at December 31, 2020, the end of the fiscal year.

Problem c) make the entry for the interest payment on January 1, 2021.

Problem d) make the entry to record the retirement of the bonds on January 2, 2022.

Reference no: EM132835327

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Make the entry for the interest payment on january

Reference no: EM132835327

Reference no: EM132835327

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