New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. On March 1, 2017, Sandhill Company sold 25,100 of its 9%, 20-year, $1,000 face value bonds at 96. Interest payment dates are March 1 and September 1, and the company uses the straight-line method of bond discount amortization. On February 1, 2018, Sandhill took advantage of favorable prices of its stock to extinguish 2,850 of the bonds by issuing 149,800 shares of its $1 par value common stock. At this time, the accrued interest was paid in cash. The companys stock was selling for $20.75 per share on February 1, 2018.

Prepare the journal entries needed on the books of Sandhill Company to record the following. (a) March 1, 2017: issuance of the bonds. (b) September 1, 2017: payment of semiannual interest. (c) December 31, 2017: accrual of interest expense. (d) February 1, 2018: extinguishment of 2,850 bonds. (No reversing entries made.)