On September 30, 2012, Sheridan Company issued 10% bonds with a par value of $520,000 due...

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On September 30, 2012, Sheridan Company issued 10% bonds with a par value of $520,000 due in 20 years. They were issued at 98 and were callable at 105 at any date after September 30, 2017. Because Sheridan Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 8% bonds were sold in the amount of $880,000 at 103; they mature in 20 years. Sheridan Company uses straight-line amortization. Interest payment dates are March 31 and September 30. (a) Your Answer Correct Answer Your answer is partially correct. Prepare journal entries to record the redemption of the old issue and the sale of the new issue on September 30, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Bonds Payable Debit Credit 520000 (b) Loss on Redemption of Bonds Discount on Bonds Payable Cash (To record the redemption of old issue) Cash Premium on Bonds Payable Bonds Payable (To record the sale of new issue) eTextbook and Media Solution List of Accounts 32240 906400 6980 545260 26400 880000 Attempts: 3 of 3 used Prepare the entry required on December 31, 2018, to accrue interest and amortize the premium on the bonds. (Credit account titles are automatically indented when the amount s entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit =SUPPOR On September 30, 2012, Sheridan Company issued 10% bonds with a par value of $520,000 due in 20 years. They were issued at 98 and were callable at 105 at any date after September 30, 2017. Because Sheridan Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 8% bonds were sold in the amount of $880,000 at 103; they mature in 20 years. Sheridan Company uses straight-line amortization. Interest payment dates are March 31 and September 30. (a) Your Answer Correct Answer Your answer is partially correct. Prepare journal entries to record the redemption of the old issue and the sale of the new issue on September 30, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Bonds Payable Debit Credit 520000 (b) Loss on Redemption of Bonds Discount on Bonds Payable Cash (To record the redemption of old issue) Cash Premium on Bonds Payable Bonds Payable (To record the sale of new issue) eTextbook and Media Solution List of Accounts 32240 906400 6980 545260 26400 880000 Attempts: 3 of 3 used Prepare the entry required on December 31, 2018, to accrue interest and amortize the premium on the bonds. (Credit account titles are automatically indented when the amount s entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit =SUPPOR