On 3/1/20, Franklin Company sold 7% bonds having a maturity value of $600,000 at a...
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On 3/1/20, Franklin Company sold 7% bonds having a maturity value of $600,000 at a price which provides the bondholders with a 5% yield. The bonds are dated 3/1/20 and mature 3/1/25 with interest payable semiannually on 3/1 and 9/1 of each year. Legal and other costs of $20,000 were incurred in connection with the issue.
Required:
a. Prepare the amortization table and all journal entries required in 2020.
b. The bonds are callable at 101, and on 6/1/22 Franklin called the bonds and retired them. Prepare all journal entries required in 2022.
A B D E F G . K 1 2 On 3/1/20, Franklin Company sold 7% bonds having a maturity value of $600,000 at a price which provides the bondholders with a 5% yield. The bonds are dated 3/1/20 and mature 3/1/25 with interest payable semiannually on 3/1 and 9/1 of each year. Legal and other costs of $20,000 were incurred in connection with the issue. 3 4. 5 6 Required: a. Prepare the amortization table and all journal entries required in 2020. b. The bonds are callable at 101, and on 6/1/22 Franklin called the bonds and retired them. Prepare all journal entries required in 2022. 7
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