Cupola Fan Corporation issued 14%, $490,000, 10-year bonds for $466,000 on June 30, 2024. . Debt issue costs were $2,400. • Interest is paid semiannually on December 31 and June 30. . One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $476,000. . 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, 2024 and June 30, 2025 and call of the bonds according to International Financial Reporting Standards. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Cupola Fan Corporation issued 14%, $490,000, 10-year bonds for $466,000 on June 30, 2024. . Debt issue costs were $2,400. • Interest is paid semiannually on December 31 and June 30. . One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $476,000. . 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, 2024 and June 30, 2025 and call of the bonds according to International Financial Reporting Standards. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cupola Fan Corporation issued 14%, $490,000, 10-year bonds for $466,000 on June 30, 2024.
⚫ Debt issue costs were $2,400.
• Interest is paid semiannually on December 31 and June 30.
⚫ One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $476,000.
⚫ 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, 2024 and June 30, 2025 and call of the bonds according to International Financial Reporting Standards.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No
Date
1
June 30, 2024
Cash
Bonds payable
2
December 31, 202 Interest expense
Cash
3
June 30, 2025
Interest expense
Cash
4
July 01, 2025
Bonds payable
Answer is not complete.
General Journal
Debit
Credit
463,600
463,600
Loss on early extinguishment
Cash
°
32,452
10,817
490,000
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