(Solution) - Gerona Company authorized the sale of 300 000 of 10 10 year -(2025 Original AI-Free Solution)

Paper Details

Gerona Company authorized the sale of $300,000 of 10%, 10-year debentures on January 1, 2008. Interest is payable on January 1 and July 1. The entire issue was sold on April 1, 2008, at 103 plus accrued interest. On April 1, 2013, $100,000 of the bond issue was reacquired and retired at 99 plus accrued interest. On June 30, 2013, the remaining bonds were reacquired at 98 plus accrued interest and refunded with an issue of $200,000 of 9% bonds which were sold at 100.
Instructions: Give the journal entries for 2008 and 2013 (through June 30) on Gerona Company's books. The company's books are kept on a calendar-year basis.