Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,485,000 of 25-year, 11% callable bonds on May 1, 20Y5, 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:

20Y5
May 1	Issued the bonds for cash at their face amount.
Nov. 1	Paid the interest on the bonds.
20Y9
Nov. 1	Called the bond issue at 95, 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.

Question Content Area

Issued the bonds for cash at their face amount.

20Y5 May 1	Accounts PayableBonds PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableBonds PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -

Question Content Area

Paid the interest on the bonds.

20Y5 Nov. 1	Bonds PayableCashGain on Redemption of BondsInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableBonds PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -

Question Content Area

Called the bond issue at 95, the rate provided in the bond indenture. (Omit entry for payment of interest.)

20Y9 Nov. 1	Accounts PayableBonds PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableBonds PayableGain on Redemption of BondsInterest ExpenseInterest PayableLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableBonds PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -