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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:

Year 1

 

Apr. 1

Issued the bonds for cash at their faceamount.

Oct. 1

Paid the interest on the bonds.

 

 

Year 3

 

Oct. 1

Called the bond issue at 104, the rateprovided in the bond indenture.  (Omit entry for paymentof interest.)

 

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