Explain the premium or discount


Clarkson inc. has $400,000 of 12% bonds, callable at 102, with a remaining 10 year term, and interest payable semiannually. the bonds are currently valued on the books at $384,000, and the company has already made the interest payment and adjustment for amortization of any premium or discount. similar bonds can be marketed currently at 10% and would sell at par.give the journal entries to retire the old debt and issue $400,000 of new 10% bonds at par?

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Accounting Basics: Explain the premium or discount
Reference No:- TGS0676907

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