Show Me How Calculator eBook Print tem Entries for Issuing and Calling Bonds; Lo

Question

Show Me How Calculator eBook Print tem Entries for Issuing and Calling Bonds; Loss Hoover Corp., a wholesaler of music equipment, issued $9,150,000 of 10-year, 12% callable bonds on March 1, Year 1, at and September 1. The fiscal year of the company is the calendar year. Year 1 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. Year 3 Seok. 1 Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of ournalize the entries to record the above selected transactions. issued the bonds for cash at their face amount. Year 1Mar. 1 Cash Bonds Payable Y Check My Work Partialy correct Paid the interest on the bonds. 3 more Check My Work uses remaning All work saved o FP ? 1o 5 6 9

Explanation / Answer

year 1 march 1 Cash 9150000           Bonds payable 9150000 Year 1 sept 1 Interest expense 549000 (9150000*12%*6/12)            Cash 549000 Year 3 sept 1 Bonds payable 9150000 Loss on redemption of bonds 366000 (9150000*104%)            Cash 9516000

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