Xonic Corporation issued $$8$ million of $20-$year, $8$ percent bonds on April $1,2021,$ at $102.$ Interest is paid on March $31$ and September

$30$ of each year, and all of the bonds in the issue mature on March $31,2041.$ Xonic's fiscal year ends on December $31.$ Prepare the

following journal entries.

a$.$ April $1,2021,$ to record the issuance of the bonds.

b$.$ September $30,2021,$ to pay interest and to amortize the bond premium.

c$.$ March $31,2041,$ to pay interest, amortize the bond premium, and retire the bonds at maturity $($make two separate entries$).$ Assume

an adjusting entry was made on December $31,2040,$ to recognize interest from October $1$ to December $31.$

d$.$ What is the effect of amortizing the bond premium on $(1)$ annual net income and $(2)$ annual net cash flow from operating activities.

$($Ignore possible income tax effects.$)$

$($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

dollars not in millions.$)$

Complete this question by entering your answers in the tabs below.

Req A to $C$

a$.$ April $1,2021,$ to record the issuance of the bonds.

b$.$ September $30,2021,$ to pay interest and to amortize the bond premium.

c$.$ March $31,2041,$ to pay interest, amortize the bond premium, and retire the bonds at maturity $($make two separate entries$).$ Assume

an adjusting entry was made on December $31,2040,$ to recognize interest from October $1$ to December $31.$

Journal entry worksheet

Record the issuance of bonds.

Note: Enter debits before credits.