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On January 1, 2014, Housen Company issued 10-year bonds of $500,000 at 102. Interest is payable...

On January 1, 2014, Housen Company issued 10-year bonds of $500,000 at 102. Interest is payable on January 1 and July 1 at 10%. April 1, 2015, Housen Company reacquires and retired 50 of its own $1000 bonds at 98 plus accrued interest. The fiscal period for Honsen Company is the calendar year.
Prepare entries to record (1) the issuance of the bonds, (2) the interest payments and adjustments relating to the debt in 2014, (3) the reacquistion and retirement of bonds in 2015, and (4) the interest payments and adjustments relating to the debt in 2015. Assume the premium or discount is amortized on a straight-line basis.

Solutions

Expert Solution

After 1 April 2015 retirement rest of the calculations are for $500000 less $50000 = $450,000 bonds

ekkarill92 answered 9 months ago
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