Entries for Issuing and Calling Bonds; Loss Hoover Corp., a wholesaler of music equipment, issued $18,800,000 of 25-year, 11% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. 20Y2 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. 20Y4 Sept. 1 Called the bond issue at 103, 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. Journalize the entries to record the above selected transactions. Issued the bonds for cash at their face amount. 20Y2 Mar. 1 Cash Bonds Payable Paid the interest on the bonds. 20Y2 Sept. 1 Interest Expense Cash Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.) 20Y4 Sept. 1 Bonds Payable Loss on Redemption of Bonds Cash
Entries for Issuing and Calling Bonds; Loss Hoover Corp., a wholesaler of music equipment, issued $18,800,000 of 25-year, 11% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. 20Y2 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. 20Y4 Sept. 1 Called the bond issue at 103, 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. Journalize the entries to record the above selected transactions. Issued the bonds for cash at their face amount. 20Y2 Mar. 1 Cash Bonds Payable Paid the interest on the bonds. 20Y2 Sept. 1 Interest Expense Cash Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.) 20Y4 Sept. 1 Bonds Payable Loss on Redemption of Bonds Cash
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entries for Issuing and Calling Bonds; Loss
Hoover Corp., a wholesaler of music equipment, issued $18,800,000 of 25-year, 11% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.
| 20Y2 | |
| Mar. 1 | Issued the bonds for cash at their face amount. |
| Sept. 1 | Paid the interest on the bonds. |
| 20Y4 | |
| Sept. 1 | Called the bond issue at 103, 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.
Issued the bonds for cash at their face amount.
| 20Y2 Mar. 1 | Cash |
| Bonds Payable |
Paid the interest on the bonds.
| 20Y2 Sept. 1 | Interest Expense |
| Cash |
Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)
| 20Y4 Sept. 1 | Bonds Payable |
| Loss on Redemption of Bonds | |
| Cash |
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