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On March 1 of the current year, Sandollar Inc. issued $48,000 of bonds at 105, paying 896 cash interest semiannually on June 30 and December
On March 1 of the current year, Sandollar Inc. issued $48,000 of bonds at 105, paying 896 cash interest semiannually on June 30 and December 31. The bonds are scheduled to mature in four years on December 31. On September 1 of the current year, $16,000 of the bonds were retired when the bonds were selling at 89. Assume the straight-line interest method is used to amortize bond discounts and premiums. Note: When answering the following questions, round your answers to the nearest whole dollar. a. Provide the entry for the bond issuance on March 1. Account Name Debit Credit Date Mar. 1 To record the bond issuance. b. Provide the entry for the interest payment on June 30. Date Account Name Debit Credit June 30 To record the interest payment. c. Provide the entry to recognize interest expense for the portion of the bond issue retired on September 1. Account Name Deblt Credit Date Sept. V To record the interest payment. d. Provide the entry to record the bond retirement on September 1. Date Account Name Debit Credit Sept. 1 To record the interest payment
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