Effective April 1, 2018, The Syracuse Corporation which has a year-end of December authorized-$ 1, 500, 000

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Question:

Effective April 1, 2018, The Syracuse Corporation which has a year-end of December authorized-$ 1, 500, 000 callable, mortgage bonds (which were secured by property and equipment with a market value of $ 2,200,000).

The bonds paid interest at a stated rate of eight percent and had an expected term of six years. Interest was due and payable, as appropriate, to bondholders each September 30th and March 31st.

On July 1, 2019, Syracuse issued 1,000 of the bonds and received a cash payment in the total amount of $ 906,000 (including accrued interest).

On October 1, 2021, Syracuse called the bonds and paid the current bondholders 1, 150,000 in cash( not including interest payable to date).

Prepare the following journal entries:

The entries related to the bonds that Syracuse entered into its records during the period April 1, 2018, through December 31, 2019.

The journal entry was recorded by Syracuse when the bonds were redeemed in October 2021. (Remember that the balance remaining in an unamortized premium or discount account must also be closed.)