Entries for Issuing and Calling Bonds;Gain Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,536,000 of 20-year, 9% 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.1.) Journalize the entries to record the following selected transactions:20Y5May 1: Issued the bonds for cash at their face amount.Nov 1: Paid the interest on the bonds.20Y9Nov 1: Called the bond issue at 96, 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.2.) Issued the bonds for cash at their face amount20Y5 May 1: Cash Bonds Payable 3.) Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.)20Y9 Nov 1: Bonds Payable Gain on Redemption of Bonds Cash CashFeedbackCheck My WorkThe semiannual cash payment to bondholders is the interest expense when bonds are sold at face value.Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.)Bonds Payable v20Y9 Nov. 1Gain on Redemption of Bonds vCash00000 Entries for tuing and Calling Bonds GainHa Breen Corp. produces and sels wind energy driven engines. To finance its operations, Ma Breen issued $1,536,000 of 20-year, 9% callable bonds on May 1, 20YS, at their face amount, with interest pavableon May 1 and November 1. The facal year of the company is the calendar yearJoumalze the entries to record the following selected transactions20vsMay 1 Issued the bonds for cesh at their face amountNov.I Paid the interest on the bonds.2019Nov. 1 Caled the bond issue at 96, 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.tesued the bonds for cash at their face amount.Cash8820Y5 May 1Bonds Payable"ChMy WBonds payable is always recorded at face value.Paid the interest on the bonds8-20YS Nov. 1 Interest ExpenseCashPhack

1. A callable bond, also known as a redeemable bond, is a bond that the issuer may redeem before it…

Answered: Entries for Issuing and Calling Bonds;…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entries for Issuing and Calling Bonds;

Gain Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,536,000 of 20-year, 9% 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.

1.) 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 96, 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.

2.) Issued the bonds for cash at their face amount

20Y5 May 1: Cash

Bonds Payable

3.) Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.)

20Y9 Nov 1: Bonds Payable

Gain on Redemption of Bonds

Cash

Entries for tuing and Calling Bonds Gain
Ha Breen Corp. produces and sels wind energy driven engines. To finance its operations, Ma Breen issued $1,536,000 of 20-year, 9% callable bonds on May 1, 20YS, at their face amount, with interest pavable
on May 1 and November 1. The facal year of the company is the calendar year
Joumalze the entries to record the following selected transactions
20vs
May 1 Issued the bonds for cesh at their face amount
Nov.I Paid the interest on the bonds.
2019
Nov. 1 Caled the bond issue at 96, 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.
tesued the bonds for cash at their face amount.
Cash
88
20Y5 May 1
Bonds Payable
"ChMy W
Bonds payable is always recorded at face value.
Paid the interest on the bonds
8-
20YS Nov. 1 Interest Expense
Cash
Phack

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