On April $1,2025,$ Indigo Company sold $16,200$ of its $12\backslash \%,15-$year, $\backslash$$$1,000$ face value bonds at $97.$ Interest payment dates are April $1$ and October $1,$ and the company uses the straight$-$line method of bond discount amortization. On March $1,2026,$ Indigo took advantage of favorable prices of its stock to extinguish $7,500$ of the bonds by issuing $247,500$ shares of its $\backslash (\backslash$$ $10\backslash )$ par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $\backslash (\backslash$$ $32\backslash )$ per share on March $1,2026.$

Prepare the journal entries needed on the books of Indigo Company to record the following. $($Do not round intermediate calculations. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

$($a$)$ April $1,2025$: issuance of the bonds.

$($b$)$ October $1,2025$: payment of semiannual interest.

$($c$)$ December $31,2025$: accrual of interest expense.

$($d$)$ March $1,2026$: extinguishment of $7,500$ bonds. $($No reversing entries made.$)$

Account Titles and Explanation

Discount on Bonds Payable

Interest Expense

Discount on Bonds Payable

Interest Expense

Discount on Bonds Payable

$\backslash [$

$15714000$

$\backslash ]$

$16200000$

$16200$

$972000$

$8100$

$486000$

B

Loss on Redemption of Bonds

Discount on Bonds Payable

$($To record interest and discount on bonds retired$)$

$($To record extinguishment of the bonds$)$