Sunland Company sold $3,400,000, 10%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1. Sunland Company uses the straight-line method to amortize bond premium or discount.

Sunland Company sold $3,400.000, 10%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1. Sunland Company uses the straight-line method to amortize bond premium or discount. (a) Your Answer Correct Answer Your answer is correct. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2020, assuming that the bonds sold at 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation Debit Credit 2020 Cash 3570000 Bonds Payable 3400000 Premium on Bonds Payable 170000 2020 Interest Expense 323000 Premium on Bonds Payable 17000 Interest Payable 340000 e Textbook and Media Solution List of Accounts Attempts: 3 of 3 used (b) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2020, assuming that the bonds are sold at 99. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Cre e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit