Albee, Inc. issued $100,000 face value bonds payable Sept $92,278. The bonds carried a stated annual interest rate of 8%, payable semi-annually on September 1 and March 1 of each year. On September 1, 2018, the effective (market) rate of interest was 10%. On March 1, 2020, after recording interest and amortization, Albee called in 40% of the outstanding bonds, at a call price of 99. Albee, Inc. uses the effective interest method to account for the bonds. REQUIRED: A) B) Prepare an amortization table for the bonds, from September 1, 2018 through September 1, 2020. Prepare all of the journal entries that Albee, Inc. should record for the bonds, from September 1, 2018 through September 1, 2020.

Albee, Inc. issued $100,000 face value bonds payable Sept $92,278. The bonds carried a stated annual interest rate of 8%, payable semi-annually on September 1 and March 1 of each year. On September 1, 2018, the effective (market) rate of interest was 10%. On March 1, 2020, after recording interest and amortization, Albee called in 40% of the outstanding bonds, at a call price of 99. Albee, Inc. uses the effective interest method to account for the bonds. REQUIRED: A) B) Prepare an amortization table for the bonds, from September 1, 2018 through September 1, 2020. Prepare all of the journal entries that Albee, Inc. should record for the bonds, from September 1, 2018 through September 1, 2020.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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