Brooks Inc.’s fiscal year ends December 31. Selected transactions for the period 20-1 through 20-8 involving bonds payable issued by Brooks are as follows:

The balance in the bond discount account is $7,200 after the payment of interest and amortization of discount have been entered. The cash balance in the sinking fund is $320,000 which is applied to the redemption. Paid the sinking fund trustee the additional cash needed to pay off the bonds. (Hint:
First make the entry for payment to the sinking fund, then make the entry for redemption of the bonds.)
REQUIRED

a. Enter the transactions in general journal form.

b. Calculate the carrying value of the bonds as of December 31, 20-2.

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20-1 Nov. 30 Dec. 31 20-2 Jan. 2 May 31 June 15 Nov. 30 Dec. 31 31 20-8 June 15 Nov. 30 30 Issued $800,000 of 10-year, 9%, callable bonds dated November 30, 20-1, for $776,000. Interest is payable semiannually on November 30 and May 31. The bond indenture provides that Brooks is to pay to the trustee bank $30,000 by June 15 of each year (except the tenth year) as a sinking fund for the retirement of the bonds on call or at maturity. Made the adjusting entry for interest payable and amortized one month's discount on the bonds (straight-line method). Reversed the adjusting entry for interest payable and bond discount amortization. Paid the semiannual interest on the bonds and amortized six months' discount. Paid the sinking fund trustee $30,000. Paid the semiannual interest on the bonds and amortized six months' discount. Made the adjusting entry for interest payable and amortized one month's discount on the bonds. Sinking fund earnings for the year were $1,100. Paid the sinking fund trustee $30,000. Paid the semiannual interest on the bonds and amortized six months' discount. Redeemed the bonds, which were called at 102.