CHART OF ACCOUNTSRushton Corp.General LedgerASSETSREVENUE110 Cash410 Sales111 Petty Cash610 Interest Revenue121 Accounts Receivable611 Gain on Redemption of Bonds122 Allowance for Doubtful Accounts126 Interest ReceivableEXPENSES127 Notes Receivable510 Cost of Merchandise Sold131 Merchandise Inventory515 Credit Card Expense141 Office Supplies516 Cash Short and Over142 Store Supplies521 Sales Salaries Expense522 Office Salaries Expense151 Prepaid Insurance531 Advertising Expense191 Land532 Delivery Expense192 Store Equipment533 Repairs Expense193 Accumulated Depreciation-Store Equipment534 Selling Expenses194 Office Equipment535 Rent Expense195 Accumulated Depreciation-Office Equipment536 Insurance Expense Rushton Corp., a wholesaler of music equipment, issued $29,700,000 of 20-year, 6% callable bonds on March 1, 20Y1, at their face amount, with interest payable onMarch 1 and September 1. The fiscal year of the company is the calendar year.Required:Journalize the entries to record the following selected transactions. Refer to the chart of accounts for the exact wording of the account titles.CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals willautomatically indent a credit entry when a credit amount is entered.20Y1Mar.1.Issued the bonds for cash at their face amount.Sept.1.Paid the interest on the bonds.20Y5Sept.1.Called the bond issue at 105, the rate provided in the bond indenture. (Omit entry for payment ofinterest.)

Journal Entry: The process of recording business transactions in the books of accounts for the first…

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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journalize each of the entries to record the selected transactions of Oliver Co. (Journal has 10 entries)
Wildhorse Corporation issued $410,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $379,250, the company redeemed the bonds at 94. Prepare the entry to record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

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