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Category > Management Posted 04 May 2018 My Price 4.00

Rockwood Company

E14-9 Premium Amortization and Partial Retirement Rockwood Company issued $100,000 of 10% bonds on November 1, 2007 at 103. Interest on the bonds is payable on November 1 and May 1 of each year, and the maturity date is November 1, 2017. Rockwood Company retired bonds with a face value of $20,000 on February 1, 2009, at 98 plus accrued interest. The company uses straight-line amortization and reverses any calendar year-end adjusting entries.

Required

1.      Prepare the journal entry to record the issuance of the bonds on November 1, 2007.

2.      Prepare all the journal entries to record the interest expense during 2008.

3.      Prepare the journal entries to record the retirement of $20,000 of the bonds on February 1, 2009.

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 04 May 2018 08:05 PM My Price 4.00

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