Question
Adele Corp., a wholesaler of music equipment, issued $33,100,000 of 20-year, 4% callable bonds on March 1, 20Y1, at their face amount, with interest payable
Adele Corp., a wholesaler of music equipment, issued $33,100,000 of 20-year, 4% 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. Refer to the Chart of Accounts for exact wording of account titles.
| 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.) |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
