1. Entries for Issuing and Calling Bonds; Loss

   Rushton Corp., a wholesaler of music equipment, issued $8,160,000 of 15-year, 14% 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 103, 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.

   20Y1 Mar. 1		fill in the blank 881eb8fa5fe800d_2	fill in the blank 881eb8fa5fe800d_3
   		fill in the blank 881eb8fa5fe800d_5	fill in the blank 881eb8fa5fe800d_6

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

   20Y1 Sept. 1		fill in the blank bfbc9a07102506f_2	fill in the blank bfbc9a07102506f_3
   		fill in the blank bfbc9a07102506f_5	fill in the blank bfbc9a07102506f_6

   Called the bond issue at 103, 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.

   20Y5 Sept. 1		fill in the blank 292968025f86069_2	fill in the blank 292968025f86069_3
   		fill in the blank 292968025f86069_5	fill in the blank 292968025f86069_6
   		fill in the blank 292968025f86069_8	fill in the blank 292968025f86069_9

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