Fogel Corp. produces and sells renewable energy equipment. To finance its operations, Fogel Corp. issued $32,000,000 of 20-year, 11% callable bonds on January 1, 2012, with interest payable on January 1 and July 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions:
2012
Jan. 1. Issued the bonds for cash at their face amount.
July 1. Paid the interest on the bonds.
2018
July 1. Called the bond issue at 97, the rate provided in the bond indenture.
(Omit entry for payment of interest.)