Question
Rushton Corp., a wholesaler of music equipment, issued $8,240,000 of 25-year, 10% callable bonds on March 1, 20Y1, at their face amount, with interest payable
Rushton Corp., a wholesaler of music equipment, issued $8,240,000 of 25-year, 10% 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 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
Journalize the entries to record the above selected transactions.
Question Content Area
Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank.
20Y1 Mar. 1 | Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds | - Select - | - Select - |
Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds | - Select - | - Select - |
Question Content Area
Paid the interest on the bonds. If an amount box does not require an entry, leave it blank.
20Y1 Sept. 1 | Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds | - Select - | - Select - |
Bonds PayableCashInterest ExpenseInterest PayableLoss on Redemption of Bonds | - Select - | - Select - |
Question Content Area
Called the bond issue at 102, 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 | Accounts PayableBonds PayableCashGain on Redemption of BondsInterest Expense | - Select - | - Select - |
Accounts PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds | - Select - | - Select - | |
Accounts PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds | - Select - | - Select - |
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