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Cupola Fan Corporation issued 12%, $520,000, 10-year bonds for $493,000 on June 30, 2021. Debt issue costs were $2,700. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $503,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2021 and June 30, 2022 and call of the bonds according to IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list

Cupola Fan Corporation issued 12%, $520,000, 10-year bonds for $493,000 on June 30, 2021. Debt issue costs were $2,700. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $503,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2021 and June 30, 2022 and call of the bonds according to IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cupola Fan Corporation issued 12%, $520,000, 10-year bonds for $493,000 on June 30, 2021. Debt issue costs were $2,700. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $503,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2021 and June 30, 2022 and call of the bonds according to IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Date June 30, 2021 Record the issuance of the bonds. Note: Enter debits before credits. 4 Cash Bonds payable General Journal Debit Credit >
Transcribed Image Text:Cupola Fan Corporation issued 12%, $520,000, 10-year bonds for $493,000 on June 30, 2021. Debt issue costs were $2,700. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $503,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2021 and June 30, 2022 and call of the bonds according to IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Date June 30, 2021 Record the issuance of the bonds. Note: Enter debits before credits. 4 Cash Bonds payable General Journal Debit Credit >
Date December 31, 2021 2 Record the payment of interest. Note: Enter debits before credits. Show Transcribed Text < 3 Journal entry worksheet 1 2 Date June 30, 2022 Note: Enter debits before credits. Show Transcribed Text 1 3 Record the payment of interest. 4 General Journal Date July 01, 2022 2 3 Journal entry worksheet 4 Note: Enter debits before credits. General Journal Record the call of the bonds 4 General Journal Debit Debit Credit Credit Debit > > Credit
Transcribed Image Text:Date December 31, 2021 2 Record the payment of interest. Note: Enter debits before credits. Show Transcribed Text < 3 Journal entry worksheet 1 2 Date June 30, 2022 Note: Enter debits before credits. Show Transcribed Text 1 3 Record the payment of interest. 4 General Journal Date July 01, 2022 2 3 Journal entry worksheet 4 Note: Enter debits before credits. General Journal Record the call of the bonds 4 General Journal Debit Debit Credit Credit Debit > > Credit
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