On January 1, 2017, Spartan Corp. issued at 93, 4% bonds with a par value...
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Accounting
On January 1, 2017, Spartan Corp. issued at 93, 4% bonds with a par value of $600,000, due in 5 years. Interest is payable semiannually on June 30 and December 31 of each year. In addition, Spartan incurred bond issue costs totaling $10,000. 4 years after the issue date, On January 1, 2021, Spartan calls the entire issue at 98 and cancels it. Spartan amortizes discounts/premiums, using the straight-line method.
Required:
Record the necessary journal entries on
January 1, 2017.
June 30 and December 31, 2017.
January 1, 2021.
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