Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,061,000...

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Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,061,000 of 25-year, 14% callable bonds on May 1, 2015, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: 20Y5 May 1 Issued the bonds for cash at their face amount. November 1 Paid the interest on the bonds. 20Y9 November 1 Called the bond issue at 98, 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. > Issued the bonds for cash at their face amount. 20Y5 May 1 Cash Bonds Payable Feedback 1,061,000 1,061,000 Check My Work Bonds payable is always recorded at face value. Paid the interest on the bonds. 20Y5 Nov. 1 Interest Expense 742.7 X Cash Feedback Check My Work The semiannual cash payment to bondholders is the interest expense when bonds are sold at face value. Called the bond issue at 98, the rate provided in the bond indenture. (Omit entry for payment of interest.) 20Y9 Nov. 1 Bonds Payable Gain on Redemption of Bonds Cash Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,061,000 of 25-year, 14% callable bonds on May 1, 2015, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: 20Y5 May 1 Issued the bonds for cash at their face amount. November 1 Paid the interest on the bonds. 20Y9 November 1 Called the bond issue at 98, 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. > Issued the bonds for cash at their face amount. 20Y5 May 1 Cash Bonds Payable Feedback 1,061,000 1,061,000 Check My Work Bonds payable is always recorded at face value. Paid the interest on the bonds. 20Y5 Nov. 1 Interest Expense 742.7 X Cash Feedback Check My Work The semiannual cash payment to bondholders is the interest expense when bonds are sold at face value. Called the bond issue at 98, the rate provided in the bond indenture. (Omit entry for payment of interest.) 20Y9 Nov. 1 Bonds Payable Gain on Redemption of Bonds Cash

Answer rating: 100% (QA)

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