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Dr. Cr. 0 1,500 x Recording Bond Retirement On March 1, 2020, Sandollar Inc. issued $30,000 of bonds at 105, paying 8% cash interest semiannually
Dr. Cr. 0 1,500 x Recording Bond Retirement On March 1, 2020, Sandollar Inc. issued $30,000 of bonds at 105, paying 8% cash interest semiannually on June 30 and December 31. The bonds are scheduled to mature December 31, 2023. On September 1, 2020, $10,000 of the bonds were retired when the bonds were selling at 89. Assume the straight-line interest method is used to amortize bond discounts and premiums. Required a. Provide the entry for the bond issuance on March 1, 2020. b. Provide the entry for the interest payment on June 30, 2020. C. Provide the entry to recognize interest expense for the portion of the bond issue retired on September 1, 2020. d. Provide the entry to record the bond retirement on September 1, 2020. Date Account Name a. Mar. 1, 2020 Cash 31,500 x Premium on Bonds Payable Bonds Payable 30,000 X Bonds Payable 0x b. June 30, 2020 Interest Expense 670 Premium on Bonds Payable 0 Cash OX 800 X Cash C. Sept. 1, 2020 Interest Expense Cash 0 X Cash 400 X d. Sept. 1, 2020 Bonds Payable 10,000 Premium on Bonds Payable Cash 0 8,900 Gain on Redemption of Bonds 1,535 x X 0 0 X 130 X X 800 X 400 X 0 X 0 435 0 Dr. Cr. 0 1,500 x Recording Bond Retirement On March 1, 2020, Sandollar Inc. issued $30,000 of bonds at 105, paying 8% cash interest semiannually on June 30 and December 31. The bonds are scheduled to mature December 31, 2023. On September 1, 2020, $10,000 of the bonds were retired when the bonds were selling at 89. Assume the straight-line interest method is used to amortize bond discounts and premiums. Required a. Provide the entry for the bond issuance on March 1, 2020. b. Provide the entry for the interest payment on June 30, 2020. C. Provide the entry to recognize interest expense for the portion of the bond issue retired on September 1, 2020. d. Provide the entry to record the bond retirement on September 1, 2020. Date Account Name a. Mar. 1, 2020 Cash 31,500 x Premium on Bonds Payable Bonds Payable 30,000 X Bonds Payable 0x b. June 30, 2020 Interest Expense 670 Premium on Bonds Payable 0 Cash OX 800 X Cash C. Sept. 1, 2020 Interest Expense Cash 0 X Cash 400 X d. Sept. 1, 2020 Bonds Payable 10,000 Premium on Bonds Payable Cash 0 8,900 Gain on Redemption of Bonds 1,535 x X 0 0 X 130 X X 800 X 400 X 0 X 0 435 0
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