EX 14-9 Entries for issuing and calling bonds; gain
Fogel Corp. produces and sells renewable energy equipment. To finance its operations, Fogel Corp. issued $32,000,000 of 20-year, 11% callable bonds on January 1, 2012, 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:
|
2012 |
|
|
Jan. 1. |
Issued the bonds for cash at their face amount. |
|
July 1. |
Paid the interest on the bonds. |
|
2018 |
|
|
July 1. |
Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.) |