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Rushton Corp., a wholesaler of music equipment, issued $15,710,000 of 20-year, 8% 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 104, 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 Cash     Bonds Payable Bonds Payable     Feedback Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1 Sept. 1   Interest Expense Interest Expense     Cash Cash     Feedback Called the bond issue at 104, 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 Bonds Payable     Loss on Redemption of Bonds Loss on Redemption of Bonds     Cash Cash     Feedback

Rushton Corp., a wholesaler of music equipment, issued $15,710,000 of 20-year, 8% 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 104, 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 Cash     Bonds Payable Bonds Payable     Feedback Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1 Sept. 1   Interest Expense Interest Expense     Cash Cash     Feedback Called the bond issue at 104, 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 Bonds Payable     Loss on Redemption of Bonds Loss on Redemption of Bonds     Cash Cash     Feedback

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 13M
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Rushton Corp., a wholesaler of music equipment, issued $15,710,000 of 20-year, 8% 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 104, 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 Cash
 
 
 Bonds Payable Bonds Payable
 
 
Feedback

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

20Y1 Sept. 1
 
 Interest Expense Interest Expense
 
 
 Cash Cash
 
 
Feedback

Called the bond issue at 104, 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 Bonds Payable
 
 
 Loss on Redemption of Bonds Loss on Redemption of Bonds
 
 
 Cash Cash
 
 
Feedback
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