=+EX 14-8 Entries for issuing and calling bonds;

loss obj. 3 Vidovich Corp. produces and sells soccer equipment. To finance its operations, Vidovich Corp. issued $15,000,000 of 30-year, 14% callable bonds on January 1 , 2010, with interest payable on January 1 and July 1. The fiscal year of the company is the calendar year.

Journalize the entries to record the following selected transactions:

2010 Jan. 1. Issued the bonds for cash at their face amount.

July 1. Paid the interest on the bonds.

2016 July 1. Called the bond issue at 98, the rate provided in the bond indenture.

(Omit entry for payment of interest.)