On March 1 of Year 1, Sandollar Inc. issued $75,000 of bonds at 105, paying 8% cash interest semiannually on June 30 and December 31. The bonds are dated January 1 of Year 1 and are scheduled to mature at December 31 of Year 4. On September 1 of Year 1, $25,000 of the bonds were retired when the bonds were selling at 89. Assume the straight-line interest method is used to amortize bond discounts and premiums. Note: When answering the following questions, round your answers to the nearest whole dollar. a. Provide the entry for the bond issuance on March 1 of Year 1. Date Mar. 1 Account Name Date June 30 To record the bond issuance. v b. Provide the entry for the interest payment on June 30 of Year 1. Account Name Debit Debit Credit Credit

On March 1 of Year 1, Sandollar Inc. issued $75,000 of bonds at 105, paying 8% cash interest semiannually on June 30 and December 31. The bonds are dated January 1 of Year 1 and are scheduled to mature at December 31 of Year 4. On September 1 of Year 1, $25,000 of the bonds were retired when the bonds were selling at 89. Assume the straight-line interest method is used to amortize bond discounts and premiums. Note: When answering the following questions, round your answers to the nearest whole dollar. a. Provide the entry for the bond issuance on March 1 of Year 1. Date Mar. 1 Account Name Date June 30 To record the bond issuance. v b. Provide the entry for the interest payment on June 30 of Year 1. Account Name Debit Debit Credit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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