*E18-25 (Entries and Disclosure for Bond Sinking Fund) The general ledger of Joe Don Baker Company shows an account for Bonds Payable with a balance of $2,000,000. Interest is payable on these bonds Problems semiannually. Of the $2,000,000, bonds in the amount of $400,000 were recently purchased at par by the sinking fund trustee and are held in the sinking fund as an investment of the fund. The annual rate of interest is 10% Instructions (a) What entry or entries should be made by Baker Company to record payment of the semiannual interest? (The company makes interest payments directly to bondholders.) (b) Illustrate how the bonds payable and the sinking fund accounts should be shown in the balance sheet. Assume that the sinking fund investments other than Baker Company's bonds amount to $511,000, and that the sinking fund cash amounts to $16,000. *E18-25 (Entries and Disclosure for Bond Sinking Fund) The general ledger of Joe Don Baker Company shows an account for Bonds Payable with a balance of $2,000,000. Interest is payable on these bonds Problems semiannually. Of the $2,000,000, bonds in the amount of $400,000 were recently purchased at par by the sinking fund trustee and are held in the sinking fund as an investment of the fund. The annual rate of interest is 10% Instructions (a) What entry or entries should be made by Baker Company to record payment of the semiannual interest? (The company makes interest payments directly to bondholders.) (b) Illustrate how the bonds payable and the sinking fund accounts should be shown in the balance sheet. Assume that the sinking fund investments other than Baker Company's bonds amount to $511,000, and that the sinking fund cash amounts to $16,000