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Last Updated on 03/19/2023 by Sophia

Jan 1, Issued 6 year bond with face value of 10 000 000 and a stated interest rate of 10%. Interest is payable semi-annually on Jan 1ST AND JULY 1ST. The market interest rate on this date is 12%

a. Issuance of the bond.

b. On 6/30/2015 the company retires bonds with a face value of $2 000 000 for $3 000 000. The bonds have an unamortized premium on that date of $400 000. Record the JE for the early retirement of the bond.