Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $30,500,000 of 20-year, 10% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Be sure to include the year in the date for the entries recording the issue and calling of the bonds. Refer to the Chart of Accounts for exact wording of account titles 20Y1 May Nov. 20Y5 Nov. 1 Issued the bonds for cash at their face amount 1 Paid the interest on the bonds. 1 Called the bond issue at 99, the rate provided in the bond indenture. (Omit entry for payment of interest.)
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $30,500,000 of 20-year, 10% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Be sure to include the year in the date for the entries recording the issue and calling of the bonds. Refer to the Chart of Accounts for exact wording of account titles 20Y1 May Nov. 20Y5 Nov. 1 Issued the bonds for cash at their face amount 1 Paid the interest on the bonds. 1 Called the bond issue at 99, the rate provided in the bond indenture. (Omit entry for payment of interest.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Instructions
Emil Corp. produces and sells wind-energy-driven engines. To finance its
operations, Emil Corp. issued $30,500,000 of 20-year, 10% callable bonds on
May 1, 20Y1, at their face amount, with interest payable on May 1 and
November 1. The fiscal year of the company is the calendar year.
Journalize the entries to record the following selected transactions. Be sure to
include the year in the date for the entries recording the issue and calling of the
bonds. Refer to the Chart of Accounts for exact wording of account titles
20Y1
May
Nov.
20Y5
Nov.
1 Issued the bonds for cash at their face amount
1 Paid the interest on the bonds.
1
X Journal
Called the bond issue at 99, the rate provided in the
bond indenture. (Omit entry for payment of interest.)
Journalize the entries to record the selected tram
1
2
DATE
1
Journalize the entry to record the selected tran
DE
DATE
DE

Transcribed Image Text:ournal
ournalize the entries to record the selected transactions. Refer to the Chart of Accounts for exact wording of account titles.
3
4
1
DATE
2
DESCRIPTION
DATE
ournalize the entry to record the selected transaction. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL
DESCRIPTION
POST. REF.
JOURNAL
DEBIT
POST. REF.
DEBIT
CREDIT
CREDIT
ACCOUNTING EQUATION
ASSETS
LIABILITIES
ASSETS
PAGE
LIABILITIES
EQU
ACCOUNTING EQUATION
PAGE
EQUI
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