Entries for Issuing and Calling Bonds; Gain Mia Breen Corp. produces and sells wind-energy-driven engines....
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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 $1,328,000 of 25-year, 12% callable bonds on May 1, 2045, 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: 2015 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 2049 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. Issued the bonds for cash at their face amount. 2015 May 1 Bonds Payable Cash Paid the interest on the bonds. 20Y5 Nov. 1 Interest Expense Cash Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) 2049 Nov. 1 Bonds Payable Gain on Redemption of Bonds Cash
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