Question:
Prepare journal entries to record the following transactions related to long term bonds of quirk Co. On April 1,2009 Quirk issued $500,000, 9% bonds for 537,868 including accrued interest. Interest payable annually on January 1 and the bonds mature on January 1, 2019.
On July 1, 2011 Quirk retired $150.000 of the bonds at 102 plus accrued interest. Quirk uses straight line amortization.