The December 31, 2007 balance sheet of Winchester Co. included the following items:
8.0% bonds payable due December 31, 2015 $1,200,000
Unamortized discount on bonds payable 48,000
The bonds were issued on December 31, 2005 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.)
On May 31, 2008, Winchester retired all of these bonds at 102 plus accrued interest.
Prepare journal entries to record:
1. The accrued interest and amortization of the bond discount for Jan. 1, 2008 thru May 31, 2008 period.
2. Record the bond retirement on May 31, 2008.
(Show computations and round to the nearest dollar.)