Acc422 Intermediate Accounting: E14-13 Matt Perry, Inc. had outstanding $6,000,000

Acc422 Intermediate Accounting
Exercise 14-13 Entries for Retirement and Issuance of Bonds
Matt Perry, Inc. had outstanding $6,000,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,000,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds at 102 on August 1. Unamortized bond discount and issue cost applicable to the 11% bonds were $120,000 and $30,000, respectively.

Instructions:
Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.(Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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