Journal Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-
ID: 2566697 • Letter: J
Question
Journal Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. 1, Year 1, at their face amount, with Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Year 1 Mar. 1 Issued the bonds for cash at their face amount. Sept.1 Paid the interest on the bonds Year 3 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) Sept. 1 Previous eck My Work 2 more Check My Work uses remainingExplanation / Answer
Journal Entries
Date
Details
Debit $
Credit $
Year 1
March 1
Cash
$ 32,700,000
Bonds payable
$ 32,700,000
Sept 1
Interest expense
1,962,000
1,962,000
Cash
Year 3
Sept 1
Bonds payable
$ 32,700,000
Premium on Bonds payable
654,000
Cash
33,354,000
Date
Details
Debit $
Credit $
Year 1
March 1
Cash
$ 32,700,000
Bonds payable
$ 32,700,000
Sept 1
Interest expense
1,962,000
1,962,000
Cash
Year 3
Sept 1
Bonds payable
$ 32,700,000
Premium on Bonds payable
654,000
Cash
33,354,000
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