Windell issued callable bonds on January 1, 2018. The company accountant has provided the partial amortization
C. schedule shown below:
Carrying Value
Date
Cash Paid Interest Expense Amortization
Jan. 1, 2018
$
612,765
June 30, 2018 $
28,000 $
30,638 $
2,638
615,403
Dec. 31, 2018
28,000
30,770
2,770
618,173
June 30, 2019
28,000
30,909
2,909
621,082
Dec. 31, 2019
28,000
31,054
3.054
624,136
After the interest payment on December 31, 2019, Windell calls the bonds and immediately retires them.
Face value of the bonds
$
700,000
The bonds were called at
104%
Required:
On December 31, 2019, prepare the entries to record the
a. Payment of interest
b. Redemption of the bonds.