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Prepare the journal entries necessary to record issue

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Reference no: EM131106215

1. (Entries for Retirement and Issuance of Bonds) Robinson, Inc. had outstanding $5,000,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $7,000,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds at 102 on August 1. Unamortized bond discount and issue cost applicable to the 11% bonds were $120,000 and $30,000, respectively. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.

Reference no: EM131106215

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