Prepare Monty Corp's journal entry to record the accrual of the interest expense on December 31, 2020. (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 for the amounts.) Account Titles and Explanation Debit Credit Date 12/31/20 Prepare Monty Corp's journal entries to record the extinguishment of 2,750 bonds by the issuance of common shares (no reversing entries are made) on March 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 Ofor the amounts.) Debit Credit Date Account Titles and Explanation 3/1/21 (To record payment of interest to bondholders) 3/1/21 (To record extinguishment of the bonds) On April 1, 2020, Monty Corp. sold 11,000 of its $900 face value, 15-year, 8% bonds at 98. 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, Monty extinguished 2,750 of the bonds by issuing 80,000 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 company's shares sold for $31 per share. Prepare Monty Corps journal entry to record the issuance of the bonds on April 1, 2020. (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.) Debit Credit Date Account Titles and Explanation 4/1/20 Prepare Monty Corp's journal entry to record the payment of the semi-annual interest on October 1, 2020. (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 O for the amounts.) Debit Credit Date Account Titles and Explanation 10/1/20 Prepare Monty Corp's journal entry to record the accrual of the interest expense on December 31, 2020. (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 for the amounts.) Account Titles and Explanation Debit Credit Date 12/31/20 Prepare Monty Corp's journal entries to record the extinguishment of 2,750 bonds by the issuance of common shares (no reversing entries are made) on March 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 Ofor the amounts.) Debit Credit Date Account Titles and Explanation 3/1/21 (To record payment of interest to bondholders) 3/1/21 (To record extinguishment of the bonds) On April 1, 2020, Monty Corp. sold 11,000 of its $900 face value, 15-year, 8% bonds at 98. 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, Monty extinguished 2,750 of the bonds by issuing 80,000 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 company's shares sold for $31 per share. Prepare Monty Corps journal entry to record the issuance of the bonds on April 1, 2020. (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.) Debit Credit Date Account Titles and Explanation 4/1/20 Prepare Monty Corp's journal entry to record the payment of the semi-annual interest on October 1, 2020. (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 O for the amounts.) Debit Credit Date Account Titles and Explanation 10/1/20
