Entries for Issuing and Calling Bonds; Gain Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $722,000 of 10-year, 12% 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 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 98, 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.

Financial Accounting
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Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 9E: Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp....
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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 $722,000 of 10-year, 12% 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 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 98, 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.

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