Polders Corp., a wholesaler of office equipment, issued $17,960,000 of 10-year,
ID: 2486180 • Letter: P
Question
Polders Corp., a wholesaler of office equipment, issued $17,960,000 of 10-year, 14% callable bonds on March 1, 2014, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. 2014 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. 2018 Sept. 1 Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.) Journalize the entries to record the above selected transactions.
Entries for Issuing and Calling Bonds; Loss
Polders Corp., a wholesaler of office equipment, issued $17,960,000 of 10-year, 14% callable bonds on March 1, 2014, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.
Journalize the entries to record the above selected transactions.
Issued the bonds for cash at their face amount.
2014 Mar. 1
Paid the interest on the bonds.
2014 Sept. 1
Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank.
2018 Sept. 1
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Exercise 14-8 (Algorithmic)
2014 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. 2018 Sept. 1 Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)Explanation / Answer
Journal Entries:
Date Accounts Titles and explanation Debit $ Credit $ Mar 1, 2014 Cash $17,960,000 14% Bonds Payable $17,960,000 Sep 1, 2014 Interest on Bonds Payable 1257200 Cash 1257200 Sep 1 , 2018 14% Bonds Payable 17960000 Loss on Issue of Bonds 538800 Cash 18498800