About the Bonds Payable

On April 1. 2019, Sarkar Sailboats sold 20,000 unit of Bonds of its 11% coupon rate, 15-year, $1,000 face value per bond. The market interest rate of the bond is 12% on the date of issuance. Interest payment dates are April 1 and October 1. On July 1, 2020, Sarkar retired 40% of its Bonds at the price of 102 plus accrued interest. Instructions Prepare the journal entries needed on the books of Sarkar to record the following: a. April 1, 2019: issuance of the bonds. b. Prepare the amortization schedule until April 1, 2022 c. October 1. 2019: payment of semiannual interest. d. December 31, 2019: accrual of interest expense and amortization of any premium/discount. e. April 1, 2020: payment of semiannual interest. f. July 1,2020: Payment of interest expense for the 40% of its Bonds retired and amortization of any premium/discount. g. July 1, 2020: Early extinguishment of 40% of its bonds