Reference no: EM132763130
General Enquiries
Enumerate the process of issuing bonds in the organization
Transatlantic Inc. issued a $1,000, 25-year bond five years ago at 11% interest.
Comparable bonds yield 8% today. What should Transatlantic bond sell for now At the end of the 7 years, the bonds were redeemed given the following:
Premium on Bonds Payable Balance:
Account balance: $249,246 - 149,547.60 = $99,698.40
Bonds Payable Balance 4,000,000
Redemption Price 4,000,000 * 102% = $4,080,000.00
Carrying Value 4,000,000 + 99,698.40 = 4,099,698.40
Gain (Redemption < CV) $19,698.40
Required:
Problem 1: Post the journal entry of the above transaction