Entries for Issuing and Calling Bonds; LossAdele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 20Y1, 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:20Y1 Mar. 1Issued the bonds for cash at their face amount.Sept. 1Paid the interest on the bonds.20Y5 Sept. 1Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) Issued the bonds for cash at their face amount.20Y1 Mar. 1 Paid the interest on the bonds.20Y1 Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank.20Y5 Sept. 1

When bonds are retired before their maturity , they are normally retired at premium to cover the…

Answered: Adele Corp., a wholesaler of music…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entries for Issuing and Calling Bonds; Loss

Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 20Y1, 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:

20Y1
Mar. 1	Issued the bonds for cash at their face amount.
Sept. 1	Paid the interest on the bonds.
20Y5
Sept. 1	Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)

Issued the bonds for cash at their face amount.

20Y1 Mar. 1

Paid the interest on the bonds.

20Y1 Sept. 1

Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank.

20Y5 Sept. 1

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