In: Accounting
On January 1, 2015 Sprint issues $300,000 of 12-year bonds with a coupon rate of 9.375% when the market rate for similar bonds is 10%. Interest is paid semi-annually on June 30th and December 31st each year.
Prepare the following journal entries:
e. Prepare the journal entry for December 31, 2026 when the bonds are repaid.