On April 1, 2020, Riverbed Corp. sold 12,000 of its $900 face value, 15-year, 8% bonds at 99. Interest payment dates are April 1 and October 1. The company follows ASPE and uses the straight-line method of bond discount amortization. On March 1, 2021, Riverbed extinguished 3,000 of the bonds by issuing 90,000 shares. At this time, the accrued interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1, 2021, 120,000 of the companys shares sold for $32 per share.

a. Prepare Riverbed Corp.s journal entry to record the payment of the semi-annual interest on October 1, 2020.

b. Prepare Riverbed Corp.s journal entry to record the accrual of the interest expense on December 31, 2020.

c. Prepare Riverbed Corp.s journal entries to record the extinguishment of 3,000 bonds by the issuance of common shares (no reversing entries are made) on March 1, 2021.