Entries for Issuing and Calling Bonds Loss Rushton Corp , a wholesaler of music equipment, issued $18,570,000 of 25 year, 10 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 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 20Y1 Mar 1 Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds Select Select Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds Select Select Paid the interest on the bonds If an amount box does not require an entry, leave it blank 20Y1 Sept 1 Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds Select Select Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds Select Select Called the bond issue at 104, 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 Accounts PayableBonds PayableCashGain on Redemption of BondsInterest Expense Select Select Accounts PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds Select Select Accounts PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds Select Select

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

Entries for Issuing and Calling Bonds; Loss Rushton Corp., a wholesaler of music equipment, issued $18,570,000 of 25-year, 10% callable bonds on March 1, 20Y1,

Entries for Issuing and Calling Bonds; Loss

Rushton Corp., a wholesaler of music equipment, issued $18,570,000 of 25-year, 10% 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 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.

20Y1 Mar. 1	Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -
	Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -

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

20Y1 Sept. 1	Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -
	Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -

Called the bond issue at 104, 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	Accounts PayableBonds PayableCashGain on Redemption of BondsInterest Expense	- Select -	- Select -
	Accounts PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -