Question
Entries for Issuing and Calling Bonds; Loss Hoover Corp., a wholesaler of music equipment, issued $14,660,000 of 20-year, 14% callable bonds on March 1, 20Y2,
Entries for Issuing and Calling Bonds; Loss
Hoover Corp., a wholesaler of music equipment, issued $14,660,000 of 20-year, 14% 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 102, 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 | fill in the blank 6727f2fe6fc5f9e_2 | fill in the blank 6727f2fe6fc5f9e_3 |
Bonds Payable | fill in the blank 6727f2fe6fc5f9e_5 | fill in the blank 6727f2fe6fc5f9e_6 |
Feedback
Bonds payable is always recorded at face value.
Paid the interest on the bonds.
20Y2 Sept. 1 | Interest Expense | fill in the blank 1df411fe003a079_2 | fill in the blank 1df411fe003a079_3 |
Cash | fill in the blank 1df411fe003a079_5 | fill in the blank 1df411fe003a079_6 |
Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)
20Y4 Sept. 1 | Bonds Payable | fill in the blank 97cf8105fff9012_2 | fill in the blank 97cf8105fff9012_3 |
Loss on Redemption of Bonds | fill in the blank 97cf8105fff9012_5 | fill in the blank 97cf8105fff9012_6 | |
Cash | fill in the blank 97cf8105fff9012_8 | fill in the blank 97cf8105fff9012_9 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started