On February 1, 2019, Ellison Co. issued nine-year callable bondswith a face value of $250,000,000 and a stated interest rate of8.5%, payable semiannually on July 1 and January 1. The bonds weresold to yield 8%. Table values are:
a. Calculate the issue price of the bonds.
b. Record the issuance on February 1, 2019.
c. Prepare the journal entries for the interest expense andpayments for 2019, 2020, 2021, 2022 and 2023. (you will need toprepare amortization schedule)
d. Assume all of the bonds are called on January 1, 2024 at102. Prepare the journal entry to record the call.
