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1. dele Corp., a wholesaler of music equipment, issued $3,640,000 of 15-year, 8% 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 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)

   Journalize the entries to record the above selected transactions.

   Issued the bonds for cash at their face amount.

   20Y1 Mar. 1	Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Loss on Redemption of Bonds
   	Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Loss on Redemption of Bonds

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   Paid the interest on the bonds.

   20Y1 Sept. 1	Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Loss on Redemption of Bonds
   	Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Loss on Redemption of Bonds

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   Called the bond issue at 102, the rate provided in the The contract between a corporation issuing bonds and the bondholders.bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank.

   20Y5 Sept. 1	Accounts Payable Bonds Payable Cash Discount on Bonds Payable Gain on Redemption of Bonds Interest Expense
   	Accounts Payable Cash Discount on Bonds Payable Gain on Redemption of Bonds Interest Expense Loss on Redemption of Bonds
   	Accounts Payable Cash Discount on Bonds Payable Gain on Redemption of Bonds Interest Expense Loss on Redemption of Bonds