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2. On March 1, 2016, Eagle Group Inc. sold $1,000,000, 9% bonds dated January 1, 2016...

2. On March 1, 2016, Eagle Group Inc. sold $1,000,000, 9% bonds dated January 1, 2016 for $1,105,256 plus $15,000 accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2026. On July 1, 2017 Eagle Group retired $300,000 of the bonds at 105 plus accrued interest. Eagle Group uses straight-line amortization.

   Required:

     Prepare the journal entry to record the redemption of $300,000 bonds on July 1, 2017.

3.

   One way to structure a lease to qualify it as an operating lease for the lessee, but as a capital lease for the lessor is to use different discount rates for the lessees and the lessors. State the other method to achieve the same goal.

Solutions

Expert Solution

Answer to first question only as per policy (question 2)

ekkarill92 answered 1 year ago
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