A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April
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Question:
A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year.
Year 1 | |
Apr. 1 | Issued the bonds for cash at their face amount. |
Oct. 1 | Paid the interest on the bonds. |
Year 3 | |
Oct. 1 | Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
Required:
Journalize the entries to record the above selected transactions. Refer to the Chart of Accounts for exact wording of account titles. |
Year 1
PAGE 1
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 | |||||
2 | |||||
3 | |||||
4 |
Year 3
PAGE 1
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 | |||||
2 | |||||
3 |
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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