申論題

五、On April 30，2000,the Abian Corporation sold $100,000 of its 12%, 10-years bonds For $101,680 including accrued interest. The bonds were dated January 1,2000. Interest is paid semi-annually on January 1 and July 1. On May 31,2003,Abian purchased 1/4 of the bonds on the open market at 101 plus accrued interest and canceled them. Abian uses the straight-line method for amortization of bond premiums and discounts.

3. Prepare the journal entry needed at May 31,2003 to record retirement of the bonds. Assume that interest and premium or discount amortization have been recorded through January 1,2003.Record interest and amortization on only the bonds retired