On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the bonds issued at $644,632.
Required:
Using an amortization schedule, show that the bonds have a carrying value of $633,887 on December 31, 2023.
Required information
Record the early retirement of bonds issued at a premium (LO9-6)