A Company Issued $1,000,000 of 30-Year, 8% Callable Bonds on April

Essay

A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: Year 1
Apr. 1 $\quad$ Issued the bonds for cash at their face amount.
Oct. 1 $\quad$ Paid the interest on the bonds.
Year 3
Oct. 1 $\quad$ Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for
$\quad$$\quad$$\quad$ payment of interest.)