On March 1, 2017 Betts Co. issued $500,000 of 6% three-year bonds plus accrued interest....
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On March 1, 2017 Betts Co. issued $500,000 of 6% three-year bonds plus accrued interest. The bonds were date January 1, 2017 and pay semi-annual interest on January 1 and July 1. The market rate of interest is 5%. On April 1, 2019, Betts Co. retired $300,000 of the bonds at 101. The remaining bonds were retired at maturity date. Betts Co. uses the effective interest method. Required: 1. Make all journal entries for the life of the bonds. 2. What is the amount of the unamortized premium or discount on January 1, 2019
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