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Entries for Issuing and Calling Bonds; Loss Hoover Corp., a wholesaler of music equipment, issued $13,590,000 of 10-year, 8% callable bonds on March 1, 2042,
Entries for Issuing and Calling Bonds; Loss Hoover Corp., a wholesaler of music equipment, issued $13,590,000 of 10-year, 8% callable bonds on March 1, 2042, 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. 2014 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 13,590,000 Bonds Payable Paid the interest on the bonds. 20Y2 Sept. 1 Interest Expense Cash Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) 2014 Sept. 1 Bonds Payable Loss on Redemption of Bonds lll Cash
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