Entries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $739,000 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: 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Υ5 Nov. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) Issued the bonds for cash at their face amount. 20Υ1, May 1 Cash 739,000 Bonds Payable 739,000 Paid the interest on the bonds. 20Υ1, Νoν. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank. 20Y5, Nov. 1
Entries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $739,000 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: 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Υ5 Nov. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) Issued the bonds for cash at their face amount. 20Υ1, May 1 Cash 739,000 Bonds Payable 739,000 Paid the interest on the bonds. 20Υ1, Νoν. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank. 20Y5, Nov. 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How would I journalize 20y1 and 20y5?

Transcribed Image Text:Entries for Issuing and Calling Bonds; Gain
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $739,000 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:
20Y1
May 1 Issued the bonds for cash at their face amount.
Nov. 1 Paid the interest on the bonds.
20Υ5
Nov. 1 Called the bond issue at 96, the rate provided in the bond indenture.
(Omit entry for payment of interest.)
Issued the bonds for cash at their face amount.
20Υ1, May 1 Cash
739,000
Bonds Payable
739,000
Paid the interest on the bonds.
20Υ1, Νoν. 1
Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank.
20Y5, Nov. 1
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