Transactions relating to the long-term issuance of bonds

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Reference no: EM131510878

A transactions relating to the long-term issuance of bonds of J & J.:

a. On March 1, 2015 J & J issued $800,000 face value J & J. second mortgage, 8% bonds for $872,160, including accrued interest. Interest is payable semiannually on December 1 and August 1 with the bonds maturing 10 years from December 1, 2014. The bonds are callable at 102. The bonds are dated Dec. 1, 2014.

b. On August 1st, paid semiannual interest on J & J’s bonds. (Use the effective method of amortization of any premium or discount.)

c. On Dec.1 st paid semiannual interest on J & J Co. bonds and purchased $400,000 face value bonds at the call price in accordance with the provisions of the bond indenture.

Reference no: EM131510878

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