Morgan, Inc., has outstanding $ 650,000 of 10- year sinking fund bonds. At the end of the

Question:

Morgan, Inc., has outstanding $ 650,000 of 10- year sinking fund bonds. At the end of the ninth year after it issued the bonds, the balance of Morgan Inc.’s Sinking Fund Investments account is $ 598,600. List the entries to record the following transactions:
a. The sale of the investments for $ 611,000
b. The final deposit in the sinking fund, bringing the balance of the account up to $ 650,000
c. The payment of the bonds