Problem #$1$

On January $1,2021,$ Darnold & Co$.$ issued $$14,000,000,10-$year, $10\%$ bonds at $97,$ with interest payable annually.

The straight$-$line method is used to amortize bond discount. On January $1,2023,$ the company

redeemed $$10,000,000$ of these bonds at $99.$

A$.$ Prepare the journal entry to record the sale of these bonds on January $1,2021.$

B$.$ Prepare the journal entry to record interest expense and bond discount amortization at December $31,2021.$

C$.$ Prepare the journal entry to record the redemption of $$10,000,000$ of the bonds at $99,$ at January $1,2023.$