question a company issued 1 000 000 of 30 year 8 callable bonds onapril 1 with inter 4288563
Question
A company issued $1,000,000 of 30-year, 8% callable bonds onApril 1, with interest payable on April 1 and October1. The fiscal year of the company is the calendaryear. Journalize the entries to record the followingselected transactions:
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Year 1 |
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Apr. 1 |
Issued the bonds for cash at their faceamount. |
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Oct. 1 |
Paid the interest on the bonds. |
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Year 3 |
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Oct. 1 |
Called the bond issue at 104, the rateprovided in the bond indenture. (Omit entry for paymentof interest.) |