The bonds mature in 10 years the market yield for bonds of

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On January 1, 2012, Phil Sonics Corporation issued $2,000,000 of 7.5% bonds, dated January 1. Interest is payable semi-annually on June 30 and December 31. The bonds mature in 10 years. The market yield for bonds of similar risk and maturity is 8%. Bond issue costs, which were paid separately to underwriters, were 7,500.

A) Prepare the Journal entry to record the issuance of the bonds on January 1, 2012

B) Prepare the Journal entry to record the early retirement of the bonds on June 30, 2014 at 98.

Reference no: EM13483897

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