P14.11 On April 1, 2023, Taylor Corp. sold 12,000 of its $1,000 face value, 15-year,...
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P14.11 On April 1, 2023, Taylor Corp. sold 12,000 of its $1,000 face value, 15-year, 11% bonds at 97. Interest payment dates are April 1 and October 1. The company follows ASPE and uses the straight-line method of bond discount amortization. On March 1, 2024, Taylor extinguished 3,000 of the bonds by issuing 100,000 shares. At this time, the accrued interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1, 2024, 120,000 of the company's shares sold for $31 per share. Instructions Prepare Taylor's journal entries to record the following: a. April 1, 2023: issuance of the bonds b. October 1, 2023: payment of the semi-annual interest c. December 31, 2023: accrual of the interest expense d. March 1, 2024: extinguishment of 3,000 bonds by the issuance of common shares (no reversing entries are made)
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P14.11 On April 1, 2023, Taylor Corp. sold 12,000 of its $1,000 face value, 15-year, 11% bonds at 97. Interest payment dates are April 1 and October 1. The company follows ASPE and uses the straight-line method of bond discount amortization. On March 1, 2024, Taylor extinguished 3,000 of the bonds by issuing 100,000 shares. At this time, the accrued interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1, 2024, 120,000 of the company's shares sold for $31 per share. Instructions Prepare Taylor's journal entries to record the following: a. April 1, 2023: issuance of the bonds b. October 1, 2023: payment of the semi-annual interest c. December 31, 2023: accrual of the interest expense d. March 1, 2024: extinguishment of 3,000 bonds by the issuance of common shares (no reversing entries are made) 