Entries for Issuing and Calling Bonds; Loss

Rushton Corp., a wholesaler of music equipment, issued $$16,080,000$ of $20-$year, $11\%$ callable bonds on March $1,20$Y$1,$ at their face amount, with interest payable on March $1$ and September $1.$ The fiscal year of the company is the calendar year.

$20$Y$1$

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

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

$20$Y$5$

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.

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Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank.

$20$Y$1$ Mar. $1$

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

$20$Y$1$ Sept. $1$

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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.

$20$Y$5$ Sept. $1$