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Sandhill Co. sold $5,325,000, 9%, 15-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on December 31. The bonds were sold at 96.     Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount  enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount  enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount      At December 31, 2017, $14,200 of the bond discount had been amortized. Show the long-term liability balance sheet presentation of the bond liability at December 31, 2017.SANDHILL CO.Balance Sheet (Partial)choose the accounting period December 31, 2017For the Year Ended December 31, 2017For the Month Ended December 31, 2017select an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity     enter a balance sheet item   $enter a dollar amount   select between addition and deduction    Add    Less    : enter a balance sheet item   enter a dollar amount  enter a total of the two previous amounts      At January 1, 2019, when the carrying value of the bonds was $5,140,400, the company redeemed the bonds at 104. Record the redemption of the bonds assuming that interest for the year had already been paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount  enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount  enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount  enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount

Question
Sandhill Co. sold $5,325,000, 9%, 15-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on December 31. The bonds were sold at 96.
 
 
 
 
 
Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 1
enter an account title for the journal entry on January 1
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title for the journal entry on January 1
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title for the journal entry on January 1
 
enter a debit amount
 
enter a credit amount
 
 
 
 
 
 
At December 31, 2017, $14,200 of the bond discount had been amortized. Show the long-term liability balance sheet presentation of the bond liability at December 31, 2017.

SANDHILL CO.
Balance Sheet (Partial)
choose the accounting period
 December 31, 2017For the Year Ended December 31, 2017For the Month Ended December 31, 2017
select an opening subsection name
 Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
         
enter a balance sheet item
 
   
$enter a dollar amount
 
   
select between addition and deduction
    Add    Less    
: enter a balance sheet item
 
   
enter a dollar amount
 
 
enter a total of the two previous amounts
 
 
 
 
 
 
At January 1, 2019, when the carrying value of the bonds was $5,140,400, the company redeemed the bonds at 104. Record the redemption of the bonds assuming that interest for the year had already been paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 1
enter an account title for the journal entry on January 1
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title for the journal entry on January 1
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title for the journal entry on January 1
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title for the journal entry on January 1
 
enter a debit amount
 
enter a credit amount
 
check_circleAnswer
Step 1

Bonds are generally long-term debt. The company issue bonds for investment purpose and paid interest according to term and condition.

Interest on any loan payable to the face value.

Step 2

Journal entry on white board

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Step 3

Bonds showing in the liabilities side of the balance she...

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