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Thanks! On April 1, 2020, Flint Corp. sold 14,000 of its $900 face value, 15-year, 10% bonds at 95. Interest payment dates are April 1
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On April 1, 2020, Flint Corp. sold 14,000 of its $900 face value, 15-year, 10% bonds at 95. Interest payment dates are April 1 and October 1. The company follows ASPE and uses the straight-line method of bond discount amortization. On March 1, 2021, Flint extinguished 3,500 of the bonds by issuing 100,000 shares. At this time, the accrued interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1, 2021, 120,000 of the company's shares sold for $31 per share. Prepare Flint Corp's journal entry to record the issuance of the bonds on April 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 4/1/20 List of Accounts Prepare Flint Corp.'s journal entry to record the payment of the semi-annual interest on October 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 10/1/20 List of Accounts Prepare Flint Corp's journal entry to record the accrual of the interest expense on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/20 List of Accounts Prepare Flint Corp's journal entries to record the extinguishment of 3,500 bonds by the issuance of common shares (no reversing entries are made) on March 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 3/1/21 3/1/21 (To record payment of interest to bondholders) (To record extinguishment of the bonds) List of Accounts 000Step by Step Solution
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