und T0I Tedemption betore maturity Instructions (a) (b) Prepare journal entries to record the issuance of the 11% bonds and the redemption of the 9% bonds. Indicate the income statement treatment of the gain or loss from redemption and the note disclosure requi P14-5 (L01,2) EXCEL (Comprehensive Bond Problem) In each of the following independent cases, the company closes its Sanford Co. sells $500,000 of 10% bonds on March 1, 2017. The bonds pay interest on September 1 and March 1, The due 2. Titania Co. sells $400,000 of 12% bonds on June 1, 2017 The bonds pay interest on December 1 and June 1 The due date of books on December 31 date of the bonds is September 1, 2020. The bonds yield 12%. Give entries through Decenmber 31, 2018. the bonds is June 1 , 2021 . The bonds yield 10%. On October 1 , 2018, Titania buys back $120,000 worth of bonds for S126 000 (includes accrued interest). Give entries through December 1, 2019 Instructions For the two cases prepare all of the relevant journal entries from the time of sale until the date indicated. Use the effective-interest method for discount and premium amortization (construct amortization tables where applicable). Amortize premium or discount on interest dates and at year-end. (Assume that no reversing entries were made.)