Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on March 1, Year 1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Year 1 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. Year 3 Sept. 1 Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)
Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on March 1, Year 1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Year 1 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. Year 3 Sept. 1 Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 8E
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Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on March 1, Year 1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.
Year 1 | ||
Mar. | 1 | Issued the bonds for cash at their face amount. |
Sept. | 1 | Paid the interest on the bonds. |
Year 3 | ||
Sept. | 1 | Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
Chart of Accounts
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Journal
Journalize the entries to record the transactions for the Year 1. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
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Journalize the entries to record the transactions for the Year 3. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
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