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Presented below are selected transactions on the books of Martinez Corporation May 1, 2020 Bonds payable with a par value of $847,200, which are dated

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Presented below are selected transactions on the books of Martinez Corporation May 1, 2020 Bonds payable with a par value of $847,200, which are dated January 1, 2020, are sold at 107 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2030. (Use interest expense account for accrued interest.) Dec. 31 Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization) Jan. 1.2021 Interest on the bonds is paid. April 1 Bonds with par value of $338,880 are called at 103 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized Dec. 31 Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, es 1.251247 and final answers to decimal places, eg. 38,548. If no entry is required, select "No Entry for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 1, 2020 Cash 906504 Bonds Payable 84720 Interest Expense 3388 Premium on Bonds Payable 2541 Date Debit Credit Account Titles and Explanation Cash May 1.2020 906504 Bonds Payable 847200 Interest Expense 33888 25416 Dec 31, 2020 101664 101664 Premium on Bonds Payable Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable 1752 1752 Jan. 1.2021 101664 Cash 101664 3.1.2021 Bonds Payable 338880 Premium on Bonds Payable 9160 Interest Expense 10166 1752 Interest Expense (To amortize the premium) Interest Payable Jan 1.2021 101664 Cash 101664 x 1.2021 Bonds Payable 338880 9160 Premium on Bonds Payable Interest Expense 10166 Cash 349046 9160 Dec 31, 2020 1919 1919 Gain on Redemption of Bonds Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) 60998 60998

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