Entries for issuing and calling bonds; loss OBJ. 3 Adele Corp., a wholesaler of music equipment, issued

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Entries for issuing and calling bonds; loss OBJ. 3 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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Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac

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