Entries for Issuing and Calling Bonds; Loss Rushton Corp., a wholesaler of music equipment, issued $10,940,000 of 20-year, 11% 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. 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 fill in the blank e41cc6054ff4071_2 fill in the blank e41cc6054ff4071_3 Bonds Payable fill in the blank e41cc6054ff4071_5 fill in the blank e41cc6054ff4071_6 Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1 Sept. 1 Interest Expense fill in the blank 0a9ba1fcb04c054_2 fill in the blank 0a9ba1fcb04c054_3 Cash fill in the blank 0a9ba1fcb04c054_5 fill in the blank 0a9ba1fcb04c054_6 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. 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 Bonds Payable Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1 Sept. 1 Interest Expense Cash 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 Bonds Payable Loss On Redemption of Bonds Cash

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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Entries for Issuing and Calling Bonds; Loss

Rushton Corp., a wholesaler of music equipment, issued $10,940,000 of 20-year, 11% 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.

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	fill in the blank e41cc6054ff4071_2	fill in the blank e41cc6054ff4071_3
	Bonds Payable	fill in the blank e41cc6054ff4071_5	fill in the blank e41cc6054ff4071_6

Paid the interest on the bonds. If an amount box does not require an entry, leave it blank.

20Y1 Sept. 1	Interest Expense	fill in the blank 0a9ba1fcb04c054_2	fill in the blank 0a9ba1fcb04c054_3
	Cash	fill in the blank 0a9ba1fcb04c054_5	fill in the blank 0a9ba1fcb04c054_6

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.

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
	Bonds Payable

Paid the interest on the bonds. If an amount box does not require an entry, leave it blank.

20Y1 Sept. 1	Interest Expense
	Cash

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	Bonds Payable
	Loss On Redemption of Bonds
	Cash

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