Entries for Issuing and Calling Bonds; Gain

Mia Breen Corp. produces and sells wind$-$energy$-$driven engines. To finance its operations, Mia Breen issued $$22,000,000$ of $20-$year, $4\%$ callable bonds on May $1,20Y5,$ 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:

$20$Y$5$

May $1$ Issued the bonds for cash at their face amount.

Nov. $1$ Paid the interest on the bonds.

$20y9$

Nov, $1$ Called the bond issue at $97,$ 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.

$20$ Y May $1$

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Paid the interest on the bonds.

$20Y5$NoV,$1$

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Called the bond issue at $97,$ the rate provided in the bond indenture. $($Omit entry for payment of interest.$).$

$2019$ Nov. $1$