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Prepare the necessary journal entry to record the redemption

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Question - On April 1, 2020, Singh Company issued $1,000,000 face value, 16.3%, ten-year bonds. The market rate of interest was 16%. Interest is paid semi-annually on April 1st and October 1st. Singh Company has a December 31st fiscal year end.

Required -

1. Prepare the necessary journal entries to record the bond transactions for 2020.

2. Singh Company decided to redeem the bonds on April 1st ,2021 (after all interest owing to the bondholders was paid) at 102. Prepare the necessary journal entry to record the redemption of the bonds on this date.

Reference no: EM133078557

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