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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 97, the rate provided in the bond indenture. (Omit entry for payment of interest.)

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 97, the rate provided in the bond indenture. (Omit entry for payment of interest.)

FINANCIAL ACCOUNTING
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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2015 Mayd Cash Accounts Payable Cash Gain on Redemption of Bonds Interest Expense Interest Payable 22.000.000 Loss on Redemption of Bonds ZUTY NVOV. Loss on Redemption of Bonds X Cash 000,000 DO ture. (Omit entry for payment of interest.). 0 660,000 X 21,340,000
Transcribed Image Text:2015 Mayd Cash Accounts Payable Cash Gain on Redemption of Bonds Interest Expense Interest Payable 22.000.000 Loss on Redemption of Bonds ZUTY NVOV. Loss on Redemption of Bonds X Cash 000,000 DO ture. (Omit entry for payment of interest.). 0 660,000 X 21,340,000
Entries for Issuing and Calling Bonds; Gain Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $22,000,000 of 20-year, 4% 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 Nov. 1 20Y9 Nov. 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. Called the bond issue at 97, 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. 20Y5 May 1 Cash ✔ Feedback Bonds Payable Check My Work Feedback Paid the interest on the bonds. 20Y5 Nov. 1 Interest Expense ✔ 440,000 ✓ Cash ✔ 22,000,000 Check My Work 22,000,000 Loss on Redemption of Bonds X Cash ✔ 440,000 Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.). 20Y9 Nov. 1 Bonds Payable ✔ 22,000,000 ✓ 660,000 X 21,340,000
Transcribed Image Text:Entries for Issuing and Calling Bonds; Gain Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $22,000,000 of 20-year, 4% 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 Nov. 1 20Y9 Nov. 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. Called the bond issue at 97, 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. 20Y5 May 1 Cash ✔ Feedback Bonds Payable Check My Work Feedback Paid the interest on the bonds. 20Y5 Nov. 1 Interest Expense ✔ 440,000 ✓ Cash ✔ 22,000,000 Check My Work 22,000,000 Loss on Redemption of Bonds X Cash ✔ 440,000 Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.). 20Y9 Nov. 1 Bonds Payable ✔ 22,000,000 ✓ 660,000 X 21,340,000
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