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Entries for Issuing and Calling Bonds; Gain

Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9% callable bonds on May 1, 20Y1, 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:

20Y1
May 1	Issued the bonds for cash at their face amount.
Nov. 1	Paid the interest on the bonds.
2022
Nov. 1	Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.)

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Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank.

20Y1, May 1	Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -

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Paid the interest on the bonds. If an amount box does not require an entry, leave it blank.

20Y1, Nov. 1	Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -

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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.

20Y5, Nov. 1	Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableBonds PayableGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -
	Accounts PayableBonds PayableCashInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -