1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2019. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2022. The bonds yield 12%. Give entries through December 31, 2020.
In each of the following independent cases, the company closes its books on December 31.
1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2019. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2022. The bonds yield 12%. Give entries through December 31, 2020.
2. Titania Co. sells $400,000 of 12% bonds on June 1, 2019. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2023. The bonds yield 10%. On October 1, 2020, Titania buys back $120,000 worth of bonds for $126,000 (includes accrued interest). Give entries through December 1, 2021.
Instructions
For the two cases, prepare all of the relevant
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