Copy of Self Study Ch14 On June 30, 2016, Indigo Limited issued 13.25% bonds with a par value of $792,000 due in 20 years. They were issued at 99 and were callable at 106 at any date after June 30, 2023. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2023, and to issue new bonds. New 10% bonds were sold in the amount of $1 million at 103; they mature in 20 years. The company follows ASPE and uses straight-line amortization. The interest payment dates are December 31 and June 30 of each year. Your answer is partially correct. Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation June 30, Bonds Payable 2023 Loss on Redemption of Bonds Cash (To record redemption of bonds payable) June 30, 2023 Cash Bonds Payable (To record issuance of new bonds) eTextbook and Media List of Accounts Your answer is partially correct. Debit 792,000 1,030,000 Credit 43,320 835,320 1,030,000 Prepare the entry required on December 31, 2023, to record the payment of the first six months of interest and the amortization of the bond premium. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Dec. 31, Interest Expense 2023 Bonds Payable Cash eTextbook and Media List of Accounts Debit 49500 Credit 750 50,250 Assistance Used