books on December 31. 00x La 1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2017. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2020. The bonds yield 12%, Give entries through December 31, 2018. 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 the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Titania buys back $120,000 worth of bonds for $126,000 (includes accrued interest). Give entries through December 1, 2019. 2EXCEL (Comprehensive Bond Problem) In each of the following independent cases, the company closes its ) 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.) 14-6 L01,2) GROUPWORK (Issuance of Bonds between Interest Dates, Straight-Line, Redemption) Presented below are selected transactions on the books of Simonson Corporation. May 1, 2017 Bonds payable witha par value of $900,000, which are dated January 1, 2017, are sold at 106 plus accrued inter- coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2027. est. They (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization.) Interest on the bonds is paid. Dec. 31 Jan. 1, 2018 Bonds with par value of $360,000 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) April 1 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium 000 003 000009 000 009 Dec. 31 amortized. 030% esaepe Instructions bloorde noitormoiai i deb wod sotbr! O5) (Round to two decimal places.) Prepare journal entries for the transactions above. P14-7 (L01,2) (Entries for Life Cycle of Bonds) On April 1, 2017, Seminole Company sold 15,000 of its 11%, 15-year, $1,4 value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of 1, 2018, Seminole took advantage of favorable prices of its stock to extinguish 6,000 of the accrued interest was paid in cash. The c