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Recording Bond Retirement On March 1, 2020, Sandollar Inc. issued $42,000 of bonds at 105, paying 8% cash interest semiari mually on June 30 and
Recording Bond Retirement On March 1, 2020, Sandollar Inc. issued $42,000 of bonds at 105, paying 8% cash interest semiari mually on June 30 and December 31. The bonds are scheduled to Mature December 31, 2023. On September 1, 2020, $14,000 of the bonds were retired when the bonds were selling at 89. Assume the straight line interest method is used to amortize bond discounts and premiums. Required 2. Provide the entry for the bond issuance on March 1, 2020. b. Provide the entry for the interest payment on June 30, 2020 C. Provide the entry to recognize interest expense for the portion of the bond issue retired on September 1, 2020. d. Provide the entry to record the bond retirement on September 1, 2020. Date Account Name Dr. Cr. 2. Mar. 1.2020 Cash 4I, III, W D Bords Payable 42,000 Premium on Bonds Payable 3000 x Paid in Capital in Excess af Par-Comman Stack D. June 30, 2020 Interest Experise 937 0 Bonds Payable X 183 x Premiuman Benis Payable 1,120 X Cash . Sent. 1, 2020 Interest Ernens 111 Premium an Bonus Payable 22 Cash 133 .. Seat. 1, 2020 Bonds Payable 10,000 D Premiun an Bents Payable 435 0 Cash 8900 Gain an Perenntinn of Honds 1,525 X DX > O Check
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