Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9% 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: 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 2022 Nov. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) Question Content Area Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank. 20Y1, May 1 Cash Cash Bonds Payable Bonds Payable Feedback Area Feedback Partially correct Question Content Area Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1, Nov. 1 Interest Expense Interest Expense Cash Cash Feedback Area Feedback Partially correct Question Content Area Called the bond issue at 96, 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. 20Y5, Nov. 1 Bonds Payable Bonds Payable Gain on Redemption of Bonds Gain on Redemption of Bonds Cash Cash Feedback Area Feedback The gain or loss is the balancing amount needed to complete the entry and is the difference between the carrying amount of the bonds and the redemption price. A corporation usually redeems its bonds at a price different from that of the carrying amount of the bonds.
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9% 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: 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 2022 Nov. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) Question Content Area Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank. 20Y1, May 1 Cash Cash Bonds Payable Bonds Payable Feedback Area Feedback Partially correct Question Content Area Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1, Nov. 1 Interest Expense Interest Expense Cash Cash Feedback Area Feedback Partially correct Question Content Area Called the bond issue at 96, 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. 20Y5, Nov. 1 Bonds Payable Bonds Payable Gain on Redemption of Bonds Gain on Redemption of Bonds Cash Cash Feedback Area Feedback The gain or loss is the balancing amount needed to complete the entry and is the difference between the carrying amount of the bonds and the redemption price. A corporation usually redeems its bonds at a price different from that of the carrying amount of the bonds.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9% 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.
| 20Y1 | |
| May 1 | Issued the bonds for cash at their face amount. |
| Nov. 1 | Paid the interest on the bonds. |
| 2022 | |
| Nov. 1 | Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
Question Content Area
Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank.
| 20Y1, May 1 |
|
Cash | Cash |
|
|
Bonds Payable | Bonds Payable |
Feedback Area
Partially correct
Question Content Area
Paid the interest on the bonds. If an amount box does not require an entry, leave it blank.
| 20Y1, Nov. 1 |
|
Interest Expense | Interest Expense |
|
|
Cash | Cash |
Feedback Area
Partially correct
Question Content Area
Called the bond issue at 96, 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.
| 20Y5, Nov. 1 |
|
Bonds Payable | Bonds Payable |
|
|
Gain on Redemption of Bonds | Gain on Redemption of Bonds | |
|
|
Cash | Cash |
Feedback Area
The gain or loss is the balancing amount needed to complete the entry and is the difference between the carrying amount of the bonds and the redemption price.
A corporation usually redeems its bonds at a price different from that of the carrying amount of the bonds.
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