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.
2015
Sept. 1
Called the bond issue at 101, the rate provided in the bond indenture.
(Omit entry for payment of interest.)