Business, 09.04.2021 22:10 jacamron

On September 15,2020 the corporation sold bonds with an aggregate principal amount of 500,000,000 bearing a 14% interest rate. The bonds will mature on September 15 2030, and are unsecured subordinated obligations of the Corporation. Interest is payable semiannually on March 15 and September 15. The Corporation may redeem the bonds at anytime beginning September 15 2020 as a whole or from time to time in part, through maturity, at specified redemption prices ranging from 112% of principal in declining percentages of the principal amount through 2027 when the percentage is set at 100% of principal amount. Thecost of issuing the bonds, totaling $11,000,000 and the discount of $5,000,000 are being amortized over the life of the bonds. Amortization of these items for the year ended December 31, 2021 was $1,212,000. During the year ended December 31, 2021 the Corporation repurchased in open market transactions $200,000,000 in face amount of the bonds for $219 333,000. The unarmortized cost of issuing these bonds and the unamortized discount, totaling $5,864,000 have been deducted in the current period. 1. Prepare the journal entry for the issuance of the bonds on September 15, 2020.

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On September 15,2020 the corporation sold bonds with an aggregate principal amount of 500,000,000 be...

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