Entries for Issuing and Calling Bonds; LossHoover Corp., a wholesaler of music equipment, issued $5,000,000 of 15-year, 10% 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.20Y2March 1: Issued the bonds for cash at their face amount.Sept 1: Paid the interest on the bonds.20Y4Sept 1: Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.Journalize the entries to record the above selected transactions: 1) Issued the bonds for cash at their face amount.20Y2 Mar. 1: CashBonds Payable 2) Paid the interest on the bonds.20Y2 Sept. 1: Interest ExpenseCash3) Called the bond issue at 104, 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 honds, LoseHover Corp, a wholesaler of music equipment, sued 5,000,000 of 15-year, 10% calable bonds on March 1, 2ova, at their face amount, with interest payaie en March 1 and Seotember 1. The fcal year ofthe company is the calendar year.20Y2Mar. 1 Isued the bonde for cash at their face amount.Sept. I Paid the interest on the bonds.20Y4Sept. 1 Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.)If an amount box does not require an entry, leave t blank,Journalze the entries to record the above selected transactions.Issued the bonds for cash at their face amount.382012 Mar. 1 CashBonds PayableFeaChec My WekBonds payable is always recorded at face value.Paid the interest on the bonds.2012 Sept. 1 Interest ExpenseCash0000 00Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.)Bonds Payable v20Y4 Sept. 1Loss on Redemption of BondsCash v

From March 1 to September 1 = 6 months So the interest will be payable for 6 months. On Sept.…

Answered: Hoover Corp., a wholesaler of music…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 $5,000,000 of 15-year, 10% 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

March 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 104, the rate provided in the bond indenture. (Omit entry for payment of interest.

Journalize the entries to record the above selected transactions:

1) Issued the bonds for cash at their face amount.

20Y2 Mar. 1: Cash

Bonds Payable

2) Paid the interest on the bonds.

20Y2 Sept. 1: Interest Expense

Cash

3) Called the bond issue at 104, 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 honds, Lose
Hover Corp, a wholesaler of music equipment, sued 5,000,000 of 15-year, 10% calable bonds on March 1, 2ova, at their face amount, with interest payaie en March 1 and Seotember 1. The fcal year of
the company is the calendar year.
20Y2
Mar. 1 Isued the bonde for cash at their face amount.
Sept. I Paid the interest on the bonds.
20Y4
Sept. 1 Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.)
If an amount box does not require an entry, leave t blank,
Journalze the entries to record the above selected transactions.
Issued the bonds for cash at their face amount.
38
2012 Mar. 1 Cash
Bonds Payable
Fea
Chec My Wek
Bonds payable is always recorded at face value.
Paid the interest on the bonds.
2012 Sept. 1 Interest Expense
Cash
00
00

00
Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.)
Bonds Payable v
20Y4 Sept. 1
Loss on Redemption of Bonds
Cash v

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