Mia Breen Corp. produces and sells wind$-$energy$-$driven engines. To finance its operations, Mia Breen issued $$1,591,000$ of $15-$year, $11\%$ callable bonds on May $1,20$Y$5,$ at their face amount, with interest payable on May $1$ and November $1.$ The fiscal year of the company is the calendar year.

Journalize the entries to record the following selected transactions:

$20$Y$5$

Date Transaction

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

November $1$ Paid the interest on the bonds.

$20$Y$9$

Date Transaction

November $1$ Called the bond issue at $97,$ 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.

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Issued the bonds for cash at their face amount.

DateAccountDebitCredit

$20$Y$5$ May $1$

Cash

Bonds Payable

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Feedback

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Paid the interest on the bonds.

DateAccountDebitCredit

$20$Y$5$ Nov. $1$

Interest Expense

Cash

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Feedback

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Called the bond issue at $97,$ the rate provided in the bond indenture. $($Omit entry for payment of interest.$)$

DateAccountDebitCredit

$20$Y$9$ Nov. $1$

Bonds Payable

Gain on Redemption of Bonds

Cash