Problem 14-07 On April 1, 2020, Bonita Company sold 14,400 of its 11%, 15-year $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the ccrued interest was pain cash. The company's stock was selling for $32 per share on March 1, 2021 Prepare the journal entre eded on the books of Bont Company to record the following interdic 38,548. If mentry is required, "No Entry for the countles and enter for the t ion to deal par 1.25127 and final answers to decimal place credit c a re automatically dented when amount is entered Do not (a) April 1, 20201 issuance of the bonds (b) October 1, 2020: payment of semiannual interest 30 December 31, 2020 c alontereste (d) March 1, 2021: extinguishment of 4.200 bonds (No reversing entries made.) 12.968,000 Date Accor d Explanation a) 4/1/20 Cash Discount on fonds Payable Bonds Payable (1) 10/1/20 D E 14.400.000 Discount on Bonds Pay 14,400 792,000 (c) 12/31/20 Interest Expense Discount on Bonds Payi 7,200 Loss on Redemption of Box Discount on bonds Payable Loss on Redemption of Bou Discount on Bonds Payable Common Stock (To record interest and discount on bonds retired) 3/1/21 N (To record extinguishment of the bonds)