FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:CHART OF ACCOUNTS
Rushton Corp.
General Ledger
ASSETS
REVENUE
110 Cash
410 Sales
111 Petty Cash
610 Interest Revenue
121 Accounts Receivable
611 Gain on Redemption of Bonds
122 Allowance for Doubtful Accounts
126 Interest Receivable
EXPENSES
127 Notes Receivable
510 Cost of Merchandise Sold
131 Merchandise Inventory
515 Credit Card Expense
141 Office Supplies
516 Cash Short and Over
142 Store Supplies
521 Sales Salaries Expense
522 Office Salaries Expense
151 Prepaid Insurance
531 Advertising Expense
191 Land
532 Delivery Expense
192 Store Equipment
533 Repairs Expense
193 Accumulated Depreciation-Store Equipment
534 Selling Expenses
194 Office Equipment
535 Rent Expense
195 Accumulated Depreciation-Office Equipment
536 Insurance Expense
Transcribed Image Text: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 on
March 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 will
automatically indent a credit entry when a credit amount is entered.
20Y1
Mar.
1.
Issued the bonds for cash at their face amount.
Sept.
1.
Paid the interest on the bonds.
20Y5
Sept.
1.
Called the bond issue at 105, the rate provided in the bond indenture. (Omit entry for payment of
interest.)
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