Issued of bonds payable and Amortization table – Business Finance
Your Company sells $2,000,000 of 10% bonds on June 1, 2012. Each bond has a face value of $1,000. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2016. The bonds were sold to yield 8%. The bonds are callable at the discretion of the issuer. On November 1, 2013, $1,400,000 of the bonds are called and retired at 1.03 plus accrued interest. The remaining bonds are outstanding until their due date.
1. Prepare the entry to record the issuance of the bonds and prepare a bond amortization table.
Your Company sells 2 000 000 of 10 bonds on June 1 2012 Each