Reference no: EM132663287
Entries for Issuing and Calling Bonds; Loss
Hoover Corp., a wholesaler of music equipment, issued $16,850,000 of 15-year, 8% 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 104, 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.
Problem 1: Journalize the entries to record the above selected transactions.
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