Redo the journal entries for Exercise 20A-3, assuming that bonds sold at 102.
In Exercise 20A-3, Morris Corporation issued $275,000 of 5%, 5-year bonds at 97 on December 1, 201X, with semiannual interest payable on December 1 and June 1. Amortization of discount is by the straight-line method.
a. Issue of bonds.
b. Semiannual interest payment on June 1 and amortization of discount.
c. Retirement of bonds at maturity.