Cupola Fan Corporation issued 10%, $600,000, 10-year bonds for $570000 on June 30, 2024. Debt issue costs were $3500. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $575000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2024 & June 30, 2025, and the call of the bonds.
Cupola Fan Corporation issued 10%, $600,000, 10-year bonds for $570000 on June 30, 2024. Debt issue costs were $3500. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $575000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2024 & June 30, 2025, and the call of the bonds.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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Cupola Fan Corporation issued 10%, $600,000, 10-year bonds for $570000 on June 30, 2024. Debt issue costs were $3500. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $575000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the
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