Entries for issuing and calling bonds; lossAdele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 20Y1, at their face amount, withinterest payable on March 1 and September 1. The fiscal year of thecompany is the calendar year. Journalize the entries to record thefollowing selected transactions: 20Y1 Mar. 1. Issued the bonds for cash at their face amount. Sept. 1. Paid the interest on the bonds. 20Y5 Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)
Entries for issuing and calling bonds; lossAdele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 20Y1, at their face amount, withinterest payable on March 1 and September 1. The fiscal year of thecompany is the calendar year. Journalize the entries to record thefollowing selected transactions: 20Y1 Mar. 1. Issued the bonds for cash at their face amount. Sept. 1. Paid the interest on the bonds. 20Y5 Sept. 1 Called the bond issue at 102, 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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Question
Entries for issuing and calling bonds; loss
Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-
year, 7% callable bonds on March 1, 20Y1, at their face amount, with
interest payable on March 1 and September 1. The fiscal year of the
company is the calendar year.
following selected transactions:
| 20Y1 | |
| Mar. 1. | Issued the bonds for cash at their face amount. |
| Sept. 1. | Paid the interest on the bonds. |
| 20Y5 | |
| Sept. 1 | Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
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