Question - Buckman Corporation issued bonds with a face value of $800,000 on April 1, 2008. The bonds pay interest semi-annually at a coupon rate of 10% per year and the due date of the bonds is April 1, 2014. The market rate is 8% per year. (25 points)
a. Record the journal entry on April 1, 2008
b. Record payment of the interest on October 1, 2008 and amortization of the premium or discount using the effective-interest rate method.
c. On June 30th, 2012, the company retired the bonds at a price of 102. Record the necessary journal entry.