Entries for Isuing and Calling Bonds; LossRushton Corp., a wholesaler of music equipment, issued $17,800,000 of 15-year, 12% 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.20Y1Mar. 1Issued the bonds for cash at their face amount.Sept. 1 Paid the interest on the bonds.20Υ5Sept. 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. 1Paid the interest on the bonds. If an amount box does not require an entry, leave it blank.20Y1 Sept. 1Called 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

Interest expense on sept 1, 20Y1 = face value of bonds x rate of interest x no. of months/12 =…

Answered: Rushton Corp., a wholesaler of music…

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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Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $270,000 of 25-year, 8% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months. Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank.

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