Polders Corp., a wholesaler of office equipment, issued $16,000,000 of 20-year, 11% callable bonds on April 1, 2010, with interest payable on April 1...

Polders Corp., a wholesaler of office equipment, issued $16,000,000 of 20-year, 11% callable bonds on April 1, 2010, 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 transaction:2010Apr. 1. Issued the bonds for cash at their face amountOct. 1. Paid the interest on the bonds2014Oct 1. Called the bond issue at 102, the rate provided in the bond indenture(Omit entry for payment of interest)

Calculation of premium or loss on redemption of bonds:It is provided in the problem that the bonds were redeemed at 102. It has two broadassumptions:(1) 102 means at 102% of face value:In this...