Rushton Corp., a wholesaler of music equipment, issued $11,000,000 of 20-year, 9% 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. Journalize the entries to record the following selected transactions: 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 101, the rate provided in the bond indenture. (Omit entry for payment of interest.) 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 Cash Cash Bonds Payable Bonds Payable Question Content Area 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 Question Content Area Called the bond issue at 101, 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
Rushton Corp., a wholesaler of music equipment, issued $11,000,000 of 20-year, 9% 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. Journalize the entries to record the following selected transactions: 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 101, the rate provided in the bond indenture. (Omit entry for payment of interest.) 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 Cash Cash Bonds Payable Bonds Payable Question Content Area 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 Question Content Area Called the bond issue at 101, 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rushton Corp., a wholesaler of music equipment, issued $11,000,000 of 20-year, 9% 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 101, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
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 |
|
Cash | Cash |
|
|
Bonds Payable | Bonds Payable |
Question Content Area
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 |
Question Content Area
Called the bond issue at 101, 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 |
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