Loumos Corp. produces and sells automotive and aircraft safety belts. To finance its operations, Loumos Corp. issued $15,000,000 of 25-year, 8% callable bonds on June 1, 2006, with interest payable on June 1 and December 1. The fiscal year of the company is the calendar year. Record the entries for the following selected transactions:
2006
June 1 Issued the bonds for cash at their face amount.
Dec. 1 Paid the interest on the bonds.
2011
Dec. 1 Called the bond issue at 98, the rate provided in the bond indenture.