Ramona Arroyo Co. issued the following bonds:

Date of issue and sale:	April 1, 20-1
Principal amount:	$250,000
Sale price of bonds:	100
Denomination of bonds:	$5,000
Life of bonds:	10 years
Stated rate:	9%, payable semiannually on September 30 and March 31

Required:

	Prepare journal entries for:
(a)	Issuance of the bonds.
(b)	Interest payment on the bonds on September 30, 20-1.
(c)	Year-end adjustment on the bonds for 20-1.
(d)	Reversing entry for the beginning of 20-2.
(e)	Interest payments on the bonds for 20-2 (March 31 and September 30).
(f)	Redemption at maturity.

CHART OF ACCOUNTS

Ramona Arroyo Co

General Ledger

	ASSETS
101	Cash
122	Accounts Receivable
141	Supplies
145	Prepaid Insurance
181	Equipment
181.1	Accumulated Depreciation
190	Bond Sinking Fund

	LIABILITIES
211	Accounts Payable
221	Bonds Payable
221.1	Discount on Bonds Payable
221.2	Premium on Bonds Payable
231	Bond Interest Payable
261	Income Tax Payable

	EQUITY
305	Preferred Stock
311	Common Stock
339	Retained Earnings
399	Income Summary

	REVENUE
401	Sales
455	Gain on Bonds Redeemed

	EXPENSES
511	Wages Expense
512	Advertising Expense
521	Rent Expense
523	Supplies Expense
525	Phone Expense
532	Bad Debt Expense
535	Insurance Expense
541	Depreciation Expense
549	Miscellaneous Expense
551	Bond Interest Expense
555	Loss on Bonds Redeemed