2. On February 1, 2021, Mojito, Inc. issued $2,000,000, 5% bonds for $2,165,000. Interest is...
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2. On February 1, 2021, Mojito, Inc. issued $2,000,000, 5% bonds for $2,165,000. Interest is payable semiannually on January 31 and July 31 with the bonds maturing on February 1, 2030 (10-year bonds). The bonds are callable at 103. On February 1, 2022, Mojito retired $800,000 of the bonds at the call price. Required: a. Prepare the journal entry for the issuance of the bonds b. Prepare any required journal entries for interest payments on July 31, 2021 and January 31, 2022. Mojito uses straight-line amortization to amortize any discount or premium. c. Prepare the required entry to record the retirement of the bonds on February 1, 2022
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