tructions over Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and otember 1. The fiscal year of the company is the calendar year. arnalize the entries to record the following seected transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Mar. Issued the bonds for cash at their face amount. 1. Sept. Paid the interest on the bonds. 20Υ4 Sept. Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of 1 interest.)
tructions over Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and otember 1. The fiscal year of the company is the calendar year. arnalize the entries to record the following seected transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Mar. Issued the bonds for cash at their face amount. 1. Sept. Paid the interest on the bonds. 20Υ4 Sept. Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of 1 interest.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 7MCQ
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Transcribed Image Text:tries for issuing and calling bonds; loss
Instructions
Chart of Accounts
Journal
ustructions
oover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and
eptember 1. The fiscal year of the company is the calendar year.
purnalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles.
20Υ2
Mar.
Issued the bonds for cash at their face amount.
1
Sept.
1
Paid the interest on the bonds.
20Υ4
Sept.
Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of
1
interest.)
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Step 1
Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability to be paid after certain period of time with interest.
6%, 20 Years bonds payable means that maturity of bond is after 20 years and interest is payable at the rate of 6% per annum.
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