On April 1, 2017, Monty Company sold 28,800 of its 12%, 15-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, 2018, Monty took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The companys stock was selling for $30 per share on March 1, 2018.

(d)March 1, 2018: extinguishment of 4,200 bonds. (No reversing entries made.) *** Need to determine Interest Expense and Discount on Bonds Payable**** Other numbers correct.

Debit Credit

3/1/18 Interest Expense ?

Interest payable 126,000

Discount on Bonds Payable ?

Cash 210,000