Cupola fan corporation issued 12%, $430,000, 10-year bonds for $412,000 on june 30, 2018. debt issue costs were $1,800. interest is paid semiannually on december 31 and june 30. one year from the issue date (july 1, 2019), the corporation exercised its call privilege and retired the bonds for $415,000. the corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. required: 1. to 4. prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on december 31, 2018 & 2019, and the call of the bonds.

cash                                      410,200 debit

discount on bonds payable18,000 debit

flotation cost                           1,800 debit

              bonds payable                             430,000 credit

June 30th 2018:

Interest expense   26,780

discount on bonds payable 900  

            flotation cost              90

            cash                     25,800

December 31th 2018:

Interest expense   26,780

discount on bonds payable 900  

            flotation cost              90

            cash                     25,800

June 30th  2019:

Interest expense   26,780

discount on bonds payable 900  

            flotation cost              90

            cash                     25,800

bonds payable 430,000

redemption of the bonds:

loss on redemption 1,830 debit

           discount on bond payable 15,300 credit

           flotation cost                          1,530 credit

           cash                                   415,000 credit

Explanation:

Issuance:

We will subtract from the issued cost the cost.

issued at         412,000

face value430,000

discount on bonds payable18,000

payments:

580,000 x 0.06 = 25800 proceeds

amortization on flotation cost 1,800 / 20 = 90

on discount on bonds 18,000 / 20 = 900

Call:

disbursement 415,000

carrying value of the bonds:

discount on bond payable 18,000 - 900 - 900 - 900 = 15,300

flotation cost 1,800 - 90  -90   -90  = 1,530

bonds payable                          430,000

discount on bond payable         (15,300)

 flotation cost                                (1, 530)

            net                                    413, 170

result on redemption:

413,170  -  415,000   =  -1,830 loss

definitely a

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.