Journal entry to record the bond issuance

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1. On January 1, 2011, Ryan Ltd. issued 10% bonds dated January 1, 2011, with a face amount of $10 million. The bonds mature in 2025 (15 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Debt issues costs were $20,000. Two years from the issue date (January 1, 2013), the corporation excised its call privilege and retired 40% of the bonds for at 105 (105% of face value of retired bonds). The corporation uses the effective interest method to determine interest and straight-line method to amortize debt issues costs.
1) Prepare the journal entry to record the bond issuance by Ryan on January 1, 2011.
2) Prepare the amortization table up to two years after the issuance of the bonds.
3) Prepare the journal entry to record cash payment on December 31, 2011 and amortization of debt issuance costs.
4) Prepare journal entries to record the call of bonds.


I already answers part 1,2, and 3.... How do I do part number 4? And in part number 3 should i record the cash payment of June 30 and December 31? or only december?

Reference no: EM13293860

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