Entries for retirement and issuance of bonds.
Please can someone help me. I've been trying to answer this question and I need someone to base my answer from. Here is the problem:
Robinson, Inc. had outstanding 5,000,000 of 11% bonds(interest payable July 31 and January 31) due in 10 years. On July 1, it issued 7,000,000 of 10%, 15 year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds at102 on August 1. Unamortized bond discount and issue cost applicable to the 11% bonds were 120,000 and 30,000, respectively.
Prepare the journal entries to record the new issue of bonds and the refunding of the bonds
