On July 1, 2021, Sandhill Corp. issued $4,060,000 of 10-year, 5% bonds at $4,391,934. This price resulted in a 4% market interest rate on the bonds. The bonds pay semi-annual interest on July 1 and January 1, and Sandhill has a December 31 year end.

Record the issue of the bonds on July 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 1
	(To record issuance of bonds.)

Question Part Score

--/1

Prepare an effective interest amortization table for the first five interest payments for these bonds. (Round answers to 0 decimal places, e.g. 5,275.)

SANDHILL CORP. Bond Premium Amortization Table Effective Interest MethodSemi-Annual Interest Payments 5% Bonds Issued at market rate of 4%
Date		Interest Payment		Interest Expense		Premium Amortization		Bond Amortized Cost
July 1, 2021		$		$		$		$
Jan. 1, 2022
July 1, 2022
Jan. 1, 2023
July 1, 2023
Jan. 1, 2024

Question Part Score

--/8

Record the accrual of interest at December 31, 2021, and the subsequent payment on January 1, 2022. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2021
	(To accrue interest expense.)
Jan. 1, 2022
	(To record interest payment.)

Question Part Score

--/5

Assuming instead that Sandhill has an August 31 year end, prepare the adjusting entry related to these bonds on August 31, 2021, as well as the subsequent interest payment on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Aug. 31, 2021
	(To accrue interest expense.)
Jan. 1, 2022
	(To record interest payment.)