Question Cupola Fan Corporation issued 10%, $530,000, 10-year bonds for $502,000 on June 30, 2018....
50.1K
Verified Solution
Link Copied!
Question
Accounting
Question
Cupola Fan Corporation issued 10%, $530,000, 10-year bonds for $502,000 on June 30, 2018. Debt issue costs were $2,800. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2019), the corporation exercised its call privilege and retired the bonds for $512,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: Prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2018 and June 30, 2019 and call of the bonds according to IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a. Record the issuance of the bonds. (I got this part correct)
b. Record the payment of interest on Dec 31, 2018. (I am missing the two blanks)
Date
General Journal
Debit
Credit
December 31, 2018
Interest expense
Bonds payable
Cash
26,500
c. Record the payment of interest on June 30, 2019. (I am missing the two blanks)
Date
General Journal
Debit
Credit
June 30, 2019
Interest expense
Bonds payable
Cash
26,500
d. Record the call of the bonds. ( I am missing the two blanks)
Date
General Journal
Debit
Credit
June 30, 2019
Bonds payable
Loss on early extinguishment
Cash
512,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!