Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $30,500,000 of 20-year, 10% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Required: Journalize the entries to record the following selected transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Y5 Nov. 1 Called the bond issue at 99, the rate provided in the bond indenture. (Omit entry for payment of interest.
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $30,500,000 of 20-year, 10% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Required: Journalize the entries to record the following selected transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Y5 Nov. 1 Called the bond issue at 99, the rate provided in the bond indenture. (Omit entry for payment of interest.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $30,500,000 of 20-year, 10% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.
Required:
| 20Y1 | ||
| May | 1 | Issued the bonds for cash at their face amount. |
| Nov. | 1 | Paid the interest on the bonds. |
| 20Y5 | ||
| Nov. | 1 | Called the bond issue at 99, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
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