P14-11 On April 1, 2017, Taylor Corp. sold 12,000 of its $1,000 face value, 15- year, 11 % bonds at 97. Interest pay-ment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2018 , Taylor extinguished 3,000 of the bonds by issuing 100,000 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, 2018, 120,000 of the company's shares sold for $31 per share .

Instructions:

Prepare Taylor Corp. 's journal entries to record the following :

(a) April 1, 2017 : issuance of the bonds

(b) October 1, 2017 : payment of the semi -annual interest

(c) December 31, 2017: accrual of the interest expense

( d) March 1, 2018: extinguishment of 3,000 bonds by the issuance of common shares (no reversing entries are made)