Question: Please add calculations with steps Practice Exercise 14-03 On September 30, 2012, Sheridan Company issued 10% bonds with a par value of $520,000 due in

Please add calculations with steps

Practice Exercise 14-03 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. 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 Debit Credit Bonds Payable 520000 Loss on Redemption of Bor Discount on Bonds Payable 546000 Cash (To record the redemption of old issue) cash 906400 Premium on Bonds Pay: 26400 880000 Bonds Payable (To record the sale of new issue)

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