that they could be redeemed in full at any point before the maturity date, at a price of $105$ of the principal. There was no requirement for a sinking fund.

redeem the $7\%$ debentures. Sunland prepares financial statements in accordance with ASPE.

Your answer is correct.

Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

$"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$