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Kusmaul Electric sold $500,000, 10%, 10-year bonds on January 1, 2008. The bonds were dated January 1 and paid interest on January 1 and July 1.

Kusmaul Electric sold $500,000, 10%, 10-year bonds on January 1, 2008. The bonds were dated January 1 and paid interest on January 1 and July 1. The bonds were sold at 104
Prepare the journal entry to record the issuance of the bonds on January 1, 2008. (List multiple debit/credit entries in descending order of amount.)
At December 31, 2008, the balance in the Premium on Bonds Payable account is $18,000. Show the balance sheet presentation of accrued interest and the bond liability at December 31, 2008.
On January 1, 2010, when the carrying value of the bonds was $516,000, the company redeemed the bonds at 105. Record the redemption of the bonds assuming that interest for the period has already been paid. (List multiple debit/credit entries in descending order of amount.)

This question was asked on Apr 27, 2010.

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