(a)
Journalize the entry for the issuance of bonds in the books of M Manufacturing.
(b)
Record the journal entry for the initial deposit to the bond sinking fund.
(c)
Journalize the entry for the semiannual interest payment in the books of M Manufacturing.
(d)
Record the journal entry for the first year’s sinking fund earnings.
(e)
Journalize the entry for the year-end adjustment in the books of M Manufacturing.
(f)
Journalize the entry to reverse the year-end adjustment in the books of M Manufacturing.
(g)
Journalize the entry for the semiannual interest payment in the books of M Manufacturing.
(h)
Record the journal entry for the deposit to bond sinking fund.
(i)
Record the journal entry for the redemption of the bonds.
(j)
Record the journal entry for the return of excess cash in the sinking fund to the corporation.
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College Accounting, Chapters 1-27
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