Entries for Bonds Payable Long-Term Financial Liabilities 14- 27 Prepare

Essay

Entries for bonds payable Long-Term Financial Liabilities 14- 27 Prepare journal entries to record the following transactions related to Chico Ltd.'s long-term bonds:
a.On April 1, 2014, Chico issued $600,000, 9% bonds (dated January 1, 2014)for $645,442
including accrued interest.Interest is payable annually on January 1, and the bonds mature
on January 1, 2024.
b.On July 1, 2016, Chico retired 30% of the bonds at 102 plus accrued interest.Chico uses
straight-line amortization.