Instructions Rushton Corp., a wholesaler of music equipment, issued $11,000,000 of 20-year, 9% cailable bonds on March 1, 2011, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year Required: Journalize the entries to record the following selected transactions Refer to the chart of accounts for the exact wording of the account thes, CNOWjournals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries CNOW journa's ww automatically indent a credit entry when a credit amount is entered 20Y1 Mar 1 Issued the bonds for cash at their face amount Paid the interest on the bonds Sept 1 2015 Sept 1 Called the bond issue at 101, the rate provided in the bond indenture. (Omit entry for payment of interest :) Rushton Corp. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable 611 Gain on Redemption of Bonds 122 Allowance for Doubtful Accounts EXPENSES 126 Interest Receivable 127 Notes Receivable 510 Cost of Merchandise Sold 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies 515 Credit Card Expense 516 Cash Short and Over 521 Sales Salaries Expense 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 151 Prepaid Insurance 191 Land 533 Repairs Expense 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 587 Office Supplies Expense TITICS LIABILITIES 537 Office Supplies Expense 210 Accounts Payable 538 Store Supplies Expense 221 Salaries Payable 541 Bad Debt Expense 231 Sales Tax Payable 232 Interest Payable 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 241 Notes Payable 251 Bonds Payable 710 Interest Expense 711 Loss on Redemption of Bonds 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends Journal Journalize the entries to record the 20Y1 transactions Refer to the chart of accounts for the exact wording of the account to CNOW journals do not use ines for our explanations. Every line on a journal page is used for debitor credit entries. CNOW journals will automatically indent a credit entry when a crocht amount is entered PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT LIABILITIES EQUITY 1 1 Journalize the entries to record the 2075 transactions. Refer to the chart of accounts for the exact wording or the account is CNOWjournals do not use dnes for our explanations. Every time on a journal page is used for debut or credit entries. CNOW journals will automatically indent a credit and when a crecht amount is entered PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT ASSETS LIABILITIES EQUITY CREDIT I 5
