Exercise Algo StraightLine: Bond computations, amortization, and bond retirement LO P P
On January Shay Company issues $ of year bonds. The bonds sell for $ Six years later, on January Shay retires these bonds by buying them on the open market for $ All interest is accounted for and paid through pecember the day before the purchase. The straightline method is used to amortize any bond discount.
What is the amount of the discount on the bonds at issuance?
How much amortization of the discount is recorded on the bonds for the entire period from January through December
What is the carrying book value of the bonds as of the close of business on December
Prepare the journal entry to record the bond retirement.
Complete this question by entering your answers in the tabs below.
Req and
Req
Req
What is the amount of the discount on the bonds at issuance?
How much amortization of the discount is recorded on the bonds for the entire period from January through December
Amount of discount
Amortization of discountV
