Make journal entries to record the bond retirement

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Problem - Discount Amortization Schedule and Retirement - Before maturity, Foster Incorporated sold $500,000 of 12% bonds on January 1, 2019, for $470,143.47, a price that yields a 14% interest rate. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2022. Foster uses the effective interest method.

Required -

1. Make an interest expense and discount amortization schedule.

2. Assume the company reacquired the bonds on July 1, 2021, at 104. Make journal entries to record the bond retirement.

Reference no: EM132888950

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