On January 1, 2014, Bernard Ltd. issues 500 5% bonds with a face value

On January 1, 2014, Bernard Ltd. issues 500 5% bonds with a face value of $1 000. The bonds mature on December 31, 2023 and pay interest semi-annually. Prepare all the necessary journal entries to record the issue of the bonds for each of the following scenarios.

bonds sold at 100
bonds sold at 102
bonds sold at 98.2

Record the bond interest expense on June 30, 2014 for each of the above scenarios.
Record the retirement of the Benjamin Ltd. bonds on December 31, 2023.

Here’s the SOLUTION

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