Entries for Issuing and Calling Bonds; Loss Rushton Corp., a wholesaler of music equipment, issued $13,970,000 of 10-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 Cash Cash 13,970,000 Cash 0 Bonds Payable Bonds Payable 0 Bonds Payable 13,970,000 Feedback 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 Interest Expense Interest Expense 0 Cash Cash 0 Cash Feedback Interest expense is determined by the formula: Principal x Interest Rate x Time. 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 Bonds Payable Bonds Payable Bonds Payable 0 Loss on Redemption of Bonds Loss on Redemption of Bonds Loss on Redemption of Bonds 0 Cash Cash 0 Cash