Entries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engines. To finance its
Question:
Entries for Issuing and Calling Bonds; Gain
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $556,000 of 20-year, 11% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.
Journalize the entries to record the following selected transactions:
20Y1 | |
May 1 | Issued the bonds for cash at their face amount. |
Nov. 1 | Paid the interest on the bonds. |
20Y5 | |
Nov. 1 | Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
Issued the bonds for cash at their face amount.
20Y1 May 1 | | ||
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Paid the interest on the bonds.
20Y1 Nov. 1 | | ||
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Called the bond issue at 96, 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 Nov. 1 | |||
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Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac