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Glen Avon Inc. specializes in the production of telecommunication satellites. The company has a 6-month fiscal...

Glen Avon Inc. specializes in the production of telecommunication satellites. The company has a 6-month fiscal end on December 31 and June 30. In 2004 the company decides to expand their operations and finances it by issuing 4,000 bonds at a 14% coupon rate (annual). The bonds pay interest on October 31 and April 30, and are due on April 30, 2019. a. (3 points) Assuming the bonds are issued on April 30, 2004 at 104, record the journal entry(ies) for the issue. b. (5 points) Record the proper adjusting entry(ies) for the 6-month fiscal end on June 30, 2004. c. (4 points) Record the interest payment on October 31, 2014. d. (8 points) On November 30, 2014, the company purchases 90 percent of the bonds back at 110 plus accrued interest. Record the proper journal entry(ies) for the repurchase. On November 30,2014(D) What amount should be debited for premium on bonds payable when you are repurchasing the bonds to take the premium account off of the books? This date is 10 + years after the bonds were issued.

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ekkarill92 answered 2 years ago
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