Bonds Issued at Face Value With Sinking Fund Martin Manufacturing issued the following bonds: Date of issue and sale: April 1, 2001 Principal amount: $500,000 Sale price of bonds: 100 Denomination of bonds: $10,000 Life of bonds: 10 years Stated rate: 7%, payable semiannually on September 30 and March 31 Annual sinking fund requirement: $34,000, payable June 1 j. Return of excess cash of $1,050 from the sinking fund to the corporation. Page: DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT i. 2011 Bonds Payable 1 Mar. 31 Bond Sinking Fund 4 j. Mar. 31 Cash 1,0500 0 5 Bond Sinking Fund 1,050 5