Farouk Corp., a wholesaler of office furniture, issued $8,000,000 of 30-year, 9% callable bonds on March 1,

Question:

Farouk Corp., a wholesaler of office furniture, issued $8,000,000 of 30-year, 9% callable bonds on March 1, 2006, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Record the entries for the following selected transactions:
2006
Mar. 1 Issued the bonds for cash at their face amount.
Sept. 1 Paid the interest on the bonds.
2010
Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture.