Entries for Issuing and Calling Bonds; Loss

Rushton Corp., a wholesaler of music equipment, issued $17,940,000 of 20-year, 12% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.

20Y1
Mar. 1	Issued the bonds for cash at their face amount.
Sept. 1	Paid the interest on the bonds.
20Y5
Sept. 1	Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)

Journalize the entries to record the above selected transactions.

Question Content Area

Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank.

20Y1 Mar. 1	Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -
	Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -

Question Content Area

Paid the interest on the bonds. If an amount box does not require an entry, leave it blank.

20Y1 Sept. 1	Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -
	Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -

Question Content Area

Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.) If an amount box does not require an entry, leave it blank.

20Y5 Sept. 1	Accounts PayableBonds PayableCashGain on Redemption of BondsInterest Expense	- Select -	- Select -
	Accounts PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -