Vidovich Corp. produces and sells renewable energy equipment. To finance its operations, Vidovich Corp. issued $1,412,000 of 25-year, 13% callable bonds on January 1, 2014, with interest payable on January 1 and July 1. The fiscal year of the company is the calendar year.
Journalize the entries to record the following selected transactions:
2014 Jan. 1 Issued the bonds for cash at their face amount.
July 1 Paid the interest on the bonds.
2020 July 1 Called the bond issue at 95, the rate provided in the bond indenture. (Omit entry for payment of interest.)
Issued the bonds for cash at their face amount.
2014 Jan. 1 Paid the interest on the bonds.
2014 July 1 Called the bond issue at 95, 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.
2020 July 1