Entries for issuing and calling bonds; loss
Dillip Corp., a wholesaler of office equipment, issued $45,000,000 of 10-year, 10% callable bonds on March 1, 2012, 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 following selected transactions:
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2012
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Mar. 1.
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Issued the bonds for cash at their face amount.
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Sept. 1.
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Paid the interest on the bonds.
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2016
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Sept. 1.
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Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)
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