Exercise $10\mathrm{.}9($Algo$)$ Accounting for Bonds Issued at a Premium: Issuance, Interest Payments, and

Retirement $($LO$10-5,$ LO$10-6)$

Xonic Corporation issued $$8\mathrm{.}8$ million of $20-$year, $8$ percent bonds on April $1,2024,$ at $102.$ Interest is paid on March $31$ and September

$30$ of each year, and all of the bonds in the issue mature on March $31,2044.$ Xonic's fiscal year ends on$.$ December $31.$ Prepare the

following journal entries:

Required:

a$.$ April $1,2024,$ to record the issuance of the bonds.

b$.$ September $30,2024,$ to pay interest and to amortize the bond premium.

c$.$ March $31,2044,$ to pay interest, amortize the bond premium, and retire the bonds at maturity $($make two separate entries$).$ Assume

an adjusting entry was made on December $31,2043,$ to recognize interest from October $1$ to December $31.$

$-$d$.$ What is the effect of amortizing the bond premium on $(1)$ annual net income and $(2)$ annual net cash flow from operating activities.

$($Ignore possible income tax effects.$)$

Complete this question by entering your answers in the tabs below.

Req $A$ to $C$

a$.$ April $1,2024,$ to record the issuance of the bonds.

b$.$ September $30,2024,$ to pay interest and to amortize the bond premium.

c$.$ March $31,2044,$ to pay interest, amortize the bond premium, and retire the bonds at maturity $($make two separate entries$).$ Assume

an adjusting entry was made on December $31,2043,$ to recognize interest from October $1$ to December $31.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

dollars not in millions.