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Entries for issuing and calling bonds; loss
Dillip Corp., a wholesaler of office equipment, issued $45,000,000 of 10-year, 10% callable bonds on March 1, 2012, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions:
2012
Mar. 1.
Issued the bonds for cash at their face amount.
Sept. 1.
Paid the interest on the bonds.
2016
Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)
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