Question

Dillon Corp. authorized $190,000 of 6% (cash payable each December 31), 10-year bonds on January 1 of Year 1. The bonds are callable at any point after Year 5 at 103. The bonds sold on January 1 of Year 1 at 98. Straight-line amortization of bond discounts and premiums is used. Due to a drop in interest rates, Dillon decided to call in half of the bonds and issue a new series of bonds at par in the amount of $95,000 (5% cash interest annually, five-year term) on January 1 of Year 6. a. Provide the entry for issuance of the 6% bonds on January 1 of Year 1. b. Provide the entry for issuance of the 5% bonds on January 1 of Year 6. c. Provide the entry for redemption of one-half of the 6% bonds on January 1 of Year 6. a. Jan. 1, Year 1 Account Name Dr. Cr. To record the issuance of bonds. b. Jan. 1, Year 6 Account Name Dr. Cr. To record the issuance of bonds. c. Jan. 1, Year 6 Account Name Dr. Cr. To record the redemption of bonds.

          Dillon Corp. authorized $190,000 of 6% (cash payable each December 31), 10-year bonds on January 1 of Year 1. The bonds are callable at any point after Year 5 at 103. The bonds sold on January 1 of Year 1 at 98. Straight-line amortization of bond discounts and premiums is used. Due to a drop in interest rates,
Dillon decided to call in half of the bonds and issue a new series of bonds at par in the amount of $95,000 (5% cash interest annually, five-year term) on January 1 of Year 6.
a. Provide the entry for issuance of the 6% bonds on January 1 of Year 1.
b. Provide the entry for issuance of the 5% bonds on January 1 of Year 6.
c. Provide the entry for redemption of one-half of the 6% bonds on January 1 of Year 6.
a. Jan. 1, Year 1
Account Name
Dr.
Cr.
To record the issuance of bonds.
b. Jan. 1, Year 6
Account Name
Dr.
Cr.
To record the issuance of bonds.
c. Jan. 1, Year 6
Account Name
Dr.
Cr.
To record the redemption of bonds.

Dillon Corp. authorized 190,000 of 6% (cash payable each December 31), 10-year bonds on January 1 of Year 1. The bonds are callable at any point after Year 5 at 103. The bonds sold on January 1 of Year 1 at 98. Straight-line amortization of bond discounts and premiums is used. Due to a drop in interest rates,
Dillon decided to call in half of the bonds and issue a new series of bonds at par in the amount of95,000 (5% cash interest annually, five-year term) on January 1 of Year 6.
a. Provide the entry for issuance of the 6% bonds on January 1 of Year 1.
b. Provide the entry for issuance of the 5% bonds on January 1 of Year 6.
c. Provide the entry for redemption of one-half of the 6% bonds on January 1 of Year 6.
a. Jan. 1, Year 1
Account Name
Dr.
Cr.
To record the issuance of bonds.
b. Jan. 1, Year 6
Account Name
Dr.
Cr.
To record the issuance of bonds.
c. Jan. 1, Year 6
Account Name
Dr.
Cr.
To record the redemption of bonds.

Added by Mary C.

Question

Please give Ace some feedback