Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 2016 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: 2016 Mar. 1. Issued the bonds for cash at their face amount. Sept. 1. Paid the interest on the bonds. 2020 Sept. 1. Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)

BuyFind

Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305088436
BuyFind

Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305088436

Solutions

Chapter 14, Problem 8E
Textbook Problem

Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 2016 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:

2016

Mar. 1. Issued the bonds for cash at their face amount.
Sept. 1. Paid the interest on the bonds.

2020

Sept. 1. Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)

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Chapter 14 Solutions

Financial Accounting
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