Entries for Issuing and Calling Bonds; Loss

$20Y1$

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 $104,$ 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. If an amount box does not require an entry, leave it blank.

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Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.

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

$20Y1$ Sept. $1$ Interest Expense grad

Cash $$

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Interest expense is determined by the formula: Principal $x$ Interest Rate $x$ Time.