Entries for issuing and calling bonds; loss

Hoover Corp., a wholesaler of music equipment, issued $$10,830,000$ of $15-$year, $13\%$ callable bonds on March $1,20Y2,$ at their face amount, with interest payable on Marc

year.

$20Y2$

March $1$ Issued the bonds for cash at their face amount.

September $1$ Paid the interest on the bonds.

$20Y4$

September $1$ Called the bond issue at $103,$ 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.

$20$Y$2$ Mar. $1$

Bonds Payable $$

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Bonds payable is always recorded at face value.

Paid the interest on the bonds.

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