Entries for issuing and calling bonds; gain

Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,337,000 of 15-year, 14% 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.

Paid the interest on the bonds. Called the bond issue at 96 , the rate provided in the bond indenture. (Omit entry for payment of interest.) 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 96 , 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