On April 1, 2014, Seminole Company sold 26,100 of its 10%, 14-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2015, Seminole took advantage of favorable prices of its stock to extinguish 7,200 of the bonds by issuing 237,600 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The companys stock was selling for $33 per share on March 1, 2015. Prepare the journal entries needed on the books of Seminole Company to record the following. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a)		April 1, 2014: issuance of the bonds.
(b)		October 1, 2014: payment of semiannual interest.
(c)		December 31, 2014: accrual of interest expense.
(d)		March 1, 2015: extinguishment of 7,200 bonds. (No reversing entries made.)

Date	Acct. Title	Debit	Credit
4/1/14	Cash	25,317,000
	Discount on Bonds Payable	783,000
	Bonds Payable		26,100,000
10/1/14	Interest Expense	1,332,966
	Discount on Bonds Payable		27,966
	Cash		1,305,000
12/31/14	Interest Expense	666,483
	Discount on Bonds payable		13,983
	Interest Payable		652,500
3/1/15	Interest Expense	?
	Interst Payable	?
	Discount on Bonds Payable		?
	Cash		?
3/1/15	Bonds Payable	7,200,000
	Loss on redemption of Bond	842,670
	Discount on bond payable		201,870
	Common Stock Paid-in Capital in Excess of par common stock		2,376,000 5,464,800

Comment