Farrar Corp., a wholesaler of office furniture, issued $7,000,000 of 20-year, 9% callable bonds on April 1,
Question:
Farrar Corp., a wholesaler of office furniture, issued $7,000,000 of 20-year, 9% callable bonds on April 1, 2008, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions:
2008
Apr. 1. Issued the bonds for cash at their face amount.
Oct. 1. Paid the interest on the bonds.
2012
Oct. 1. Called the bond issue at 103, the rate provided in the bond indenture.
(Omit entry for payment of interest.)
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Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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