On March 1, 2021, Stew Ltd. Issued $300,000, 6%, 10-Year Bonds At 105. The Bonds Pay Interest Semi-Annually On September 1 And March 1. The Company Has A December 31 Year End. Assume Amortization Of $900 And $860 Respectively For The First Two Semi-Annual Interest Periods. On March 2, 2022 The Company Redeemed The Bonds At A Price Of
On March 1, 2021, Stew Ltd. issued $300,000, 6%, 10-year bonds at 105. The bonds pay interest semi-annually on September 1 and March 1. The company has a December 31 year end. Assume amortization of $900 and $860 respectively for the first two semi-annual interest periods. On March 2, 2022 the company redeemed the bonds at a price of $312,000.
Instructions
Prepare the journal entries that Stew Ltd. would make related to the bond issue on the dates indicated below:
March 1, 2021
September 1, 2021
December 31, 2021
March 1, 2022
March 2, 2022
