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.

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.

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Expert Solution

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

ekkarill92 answered 8 months ago

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