Cupola Fan Corporation issued 14%, $440,000, 10-year bonds for $421,000 on June 30, 2024.Debt issue costs were $1,900.• Interest is paid semiannually on December 31 and June 30.●One year from the issue date (July 1, 2025), the corporation exercised its call privilege andretired the bonds for $431,000.• The corporation uses the straight-line method both to determine interest expense and toamortize debt issue costs.Required:1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest andamortization of debt issue costs on December 31, 2024 and June 30, 2025 and call of the bondsaccording to International Financial Reporting Standards.Note: If no entry is required for a transaction/event, select "No journal entry required" in the firsaccount field.View transaction listJournal entry worksheet12Record the issuance of the bonds.Note: Enter debits before credits.DateJune 30, 202434General JournalCashCost of goods soldBad debt expenseBonds payableDebitCredit

The procedure by which a bond issuer reimburses bondholders and essentially removes the bond from…

Cupola Fan Corporation issued 14%, $440,000, 10-year bonds for $421,000 on June 30, 2024. • Debt issue costs were $1,900. • Interest is paid semiannually on December 31 and June 30. • One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $431,000. • The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest a amortization of debt issue costs on December 31, 2024 and June 30, 2025 and call of the bonds according to International Financial Reporting Standards. Note: If no entry is required for a transaction/event, select "No journal entry required" in the fi account field. View transaction list Journal entry worksheet

Cupola Fan Corporation issued 14%, $440,000, 10-year bonds for $421,000 on June 30, 2024. • Debt issue costs were $1,900. • Interest is paid semiannually on December 31 and June 30. • One year from the issue date (July 1, 2025), the corporation exercised its call privilege and retired the bonds for $431,000. • The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds, the payment of interest a amortization of debt issue costs on December 31, 2024 and June 30, 2025 and call of the bonds according to International Financial Reporting Standards. Note: If no entry is required for a transaction/event, select "No journal entry required" in the fi account field. View transaction list Journal entry worksheet

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

See similar textbooks