Bond entries

During 1994 and 1995, Norris Company completed the following transactions relating to its $5,000,000 issue of 20-year, 12% bonds dated July 1, 1994. Interest is payable on June 30 and December 31. The corporation's fiscal year is the calendar year 1994 July Dec. Sold the bond issue for $5, 402,000 cash. Paid the semiannual interest on the bonds. Recorded bond premium amortization of $10.050, which was determined by using the straight-line method. Deposited $144,000 cash in a bond sinking fund. Appropriated $125,000 of retained earnings for bonded indebtedness. Closed the interest expense account. 1995 Jan June Dec Purchased various securities with sinking fund cash, cost $136, 500 Paid the semiannual interest on the bonds. Recorded the receipt of $10, 150 of income on sinking fund securities, depositing the cash in the sinking fund. Paid the semiannual interest on the bonds. Recorded bond premium amortization of $20, 100, which was determined by using the straight-line method. Deposited $288,000 cash in the sinking fund. Appropriated $250000 of retained earnings for bonded indebtedness. Closed the interest expense account