Entries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engines. To...
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Entries for Issuing and Calling Bonds; Gain
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $694,000 of 20-year, 8% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.
Journalize the entries to record the following selected transactions:
20Y1
May 1
Issued the bonds for cash at their face amount.
Nov. 1
Paid the interest on the bonds.
20Y5
Nov. 1
Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.)
Question Content Area
Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank.
20Y1, May 1
Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds
- Select -
- Select -
Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds
- Select -
- Select -
Question Content Area
Paid the interest on the bonds. If an amount box does not require an entry, leave it blank.
20Y1, Nov. 1
Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds
- Select -
- Select -
Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds
- Select -
- Select -
Question Content Area
Called the bond issue at 97, 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.
20Y5, Nov. 1
Bonds PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds
- Select -
- Select -
Bonds PayableGain on Redemption of BondsInterest ExpenseInterest PayableLoss on Redemption of Bonds
- Select -
- Select -
Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds
- Select -
- Select -
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