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Please show all work, thank you. Dr. Cr. On March 1, 2020, Sandollar Inc. issued $15,000 of bonds at 105, paying 8% cash interest semiannually
Please show all work, thank you.
Dr. Cr. On March 1, 2020, Sandollar Inc. issued $15,000 of bonds at 105, paying 8% cash interest semiannually on June 30 and December 31. The bonds are scheduled to mature December 31, 2023. On September 1, 2020, $5,000 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. Required a. Provide the entry for the bond issuance on March 1, 2020. b. Provide the entry for the interest payment on June 30, 2020. c. Provide the entry to recognize interest expense for the portion of the bond issue retired on September 1, 2020. d. Provide the entry to record the bond retirement on September 1, 2020. Date Account Name a. Mar. 1, 2020 Cash OX Bonds Payable Interest Payable Premium on Bonds Payable 5. June 30, 2020 Interest Expense Interest Payable 0 Premium on Bonds Payable Cash Sept. 1, 2020 Interest Expense 0 Premium on Bonds Payable OX Cash Ox d. Sept. 1, 2020 Bonds Payable 0 Premium on Bonds Payable Cash OX Gain on Redemption of Bonds OX OX ov A Ox OX OX 0Step by Step Solution
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