Essay
Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Pitts Co.:March 1Issued $3,000,000 face value Pitts Co. second mortgage, 8% bonds for $3,270,600, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102.June 1Paid semiannual interest on Pitts Co. bonds. (Use straight-line amortization of any premium or discount.)December 1Paid semiannual interest on Pitts Co. bonds and purchased $1,500,000 face value bonds at the call price in accordance with the provisions of the bond indenture.
Correct Answer:
Verified
Correct Answer:
Verified
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