BONDS ISSUED AT A PREMIUM, REDEEMED AT A LOSS Blackwell

BONDS ISSUED AT A PREMIUM, REDEEMED AT A LOSS Blackwell Company issued the following bonds at a premium:

Date of issue and sale: .....March 1, 20-1

Principal amount: .......$500,000

Sale price of bonds: ......103

Denomination of bonds: .....$1,000

Life of bonds: .........20 years

Stated rate: ..........12%, payable semiannually on August

...............31 and February 28

REQUIRED

Prepare journal entries for:

(a) Issuance of the bonds.

(b) Interest payment and premium amortization on the bonds on August 31, 20-1.

(c) Year-end adjustment on the bonds for 20-1.

(d) Reversing entry for the beginning of 20-2.

(e) Redemption of $50,000 of the bonds on March 1, 20-6, at 106.