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E10-8A Truax

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EXERCISE 10–8A Journal entries for Callable Bonds
Truax Co. issued 250,000 of 6% 10-year, callable bonds on January 1, 2013 for their face value.
The call premium was 2% (bonds are callable at 102). Interest was payable annually on December
31. The bonds were called on December 31, 2016.

Required
Prepare the journal entries to record the bond issue on January 1, 2013 and the bond redemption on December
31, 2016 Assume that all entries to accrue and pay interest were recorded correctly.

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