Cupola Fan Corporation issued 12%, $580,000, 10-year bonds for $552,000 on June 30, 2024. Debt issue costs were $3,300. Interest is paid semiannually on
Cupola Fan Corporation issued 12%, $580,000, 10-year bonds for $552,000 on June 30, 2024. Debt issue costs were $3,300. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $560,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2024 & June 30, 2025, and the call of the bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Date June 30, 2024 Cash Bonds payable Answer is not complete. General Journal Debit Credit 548,700 548,700 2 December 31, 202 Interest expense Bonds payable Cash 36,365 1,565 34,800 3 June 30, 2025 Interest expense Bonds payable Cash 36,365 1,565 34,800 4 July 01, 2025 Bonds payable 551,830 x Loss on early extinguishment 8,170 Cash 560,000
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Overview Cupola Fan Corporation issued 580000 12 10year bonds for 552000 on June 30 2024 The following steps will provide the necessary journal entries for the issuance of the bonds the payment of int...See step-by-step solutions with expert insights and AI powered tools for academic success
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