Entries for Issuing and Calling Bonds; Loss

Hoover Corp., a wholesaler of music equipment, issued $5,000,000 of 15-year, 10% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.

20Y2
Mar. 1	Issued the bonds for cash at their face amount.
Sept. 1	Paid the interest on the bonds.
20Y4
Sept. 1	Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.)

If an amount box does not require an entry, leave it blank.

Journalize the entries to record the above selected transactions.

Issued the bonds for cash at their face amount.

20Y2 Mar. 1	Cash
	Bonds Payable

Paid the interest on the bonds.

20Y2 Sept. 1	Interest Expense
	Cash

Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.)

20Y4 Sept. 1	Bonds Payable
	Loss on Redemption of Bonds
	Cash

Entries for sing and Calling on Low Hover Corp. a whole of music equipment, und 15,000,000 of 15 year 10% cable bonds on March 1, 2012, at the face amount, with interest on March 1 and Setember. The focal year the company is the calendar year 2012 Mar. 1 Issued the bonds for cash at their face amount Sept. 1 Paid the interest on the bonds 2014 Sept. 1 Called the bond issue at 104, the rate provided in the band indenture comit entry for payment of interest 17 an amount box does not require an entry, leave it blank Joumalize the entries to record the above selected transactions Issued the bonds for cash at their face amount 2012 Mar : Cash Bonds Payable Bonds payable is always recorded at face value. Paid the interest on the bonds. 2012 Sept. Interest Expense Cash Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.) 2014 Sept. 1 Bonds Payable Loss on Redemption of Bonds 111 Cash Entries for sing and Calling on Low Hover Corp. a whole of music equipment, und 15,000,000 of 15 year 10% cable bonds on March 1, 2012, at the face amount, with interest on March 1 and Setember. The focal year the company is the calendar year 2012 Mar. 1 Issued the bonds for cash at their face amount Sept. 1 Paid the interest on the bonds 2014 Sept. 1 Called the bond issue at 104, the rate provided in the band indenture comit entry for payment of interest 17 an amount box does not require an entry, leave it blank Joumalize the entries to record the above selected transactions Issued the bonds for cash at their face amount 2012 Mar : Cash Bonds Payable Bonds payable is always recorded at face value. Paid the interest on the bonds. 2012 Sept. Interest Expense Cash Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.) 2014 Sept. 1 Bonds Payable Loss on Redemption of Bonds 111 Cash