Nivan Company issued $439,000 of 5 percent, 10 -year, callable bonds on January 1, Year...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Nivan Company issued $439,000 of 5 percent, 10 -year, callable bonds on January 1, Year 1 , at their face value. The call premium was 1 percent (bonds are callable at 101). Interest was payable annually on December 31. The bonds were called on December 31 , Year 5. Required Prepare the journal entries to record the bond issue on January 1, Year 1, and the bond redemption on December 31, Year 5. Entries for accrual and payment of interest are not required. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Nivan Company issued $439,000 of 5 percent, 10 -year, callable bonds on January 1, Year 1 , at their face value. The call premium was 1 percent (bonds are callable at 101). Interest was payable annually on December 31. The bonds were called on December 31 , Year 5. Required Prepare the journal entries to record the bond issue on January 1, Year 1, and the bond redemption on December 31, Year 5. Entries for accrual and payment of interest are not required. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 