Present entries to record the selected transactions described below:

Required:

a$.$ Issued $$2,750,000$ of $10-$year, $8\%$ bonds at $97.*$

b$.$ Amortized bond discount for a full year, using the straight$-$line method.$*$

c$.$ Called bonds at $98.$ Assume the bonds were carried at $$2,692,250$ at the time of the redemption.$*$

$*$Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

General Ledger

ASSETS

$110$ Cash

$111$ Petty Cash

$112$ Accounts Receivable

$113$ Allowance for Doubtful Accounts

$114$ Notes Receivable

$115$ Interest Receivable

$121$ Inventory

$122$ Supplies

$131$ Prepaid Insurance

$140$ Land

$151$ Building

$152$ Accumulated Depreciation$-$Building

$153$ Equipment

$154$ Accumulated Depreciation$-$Equipment

LIABILITIES

$210$ Accounts Payable

$221$ Salaries Payable

$231$ Sales Tax Payable

$241$ Notes Payable

$242$ Interest Payable

$251$ Bonds Payable

$252$ Discount on Bonds Payable

$253$ Premium on Bonds Payable

EQUITY

$310$ Common Stock

$311$ Retained Earnings

$312$ Dividends

REVENUE

$410$ Sales

$610$ Interest Revenue

$611$ Gain on Redemption of Bonds

EXPENSES

$510$ Cost of Goods Sold

$511$ Bad Debt Expense

$512$ Credit Card Expense

$513$ Cash Short and Over

$521$ Salaries Expense

$531$ Advertising Expense

$532$ Delivery Expense

$533$ Repairs Expense

$534$ Rent Expense

$535$ Insurance Expense

$536$ Supplies Expense

$551$ Depreciation Expense$-$Building

$552$ Depreciation Expense$-$Equipment

$590$ Miscellaneous Expense

$710$ Interest Expense

$711$ Loss on Redemption of Bonds

a$.$ Issued $$2,750,000$ of $10-$year, $8\%$ bonds at $97$ on January $1.$ Refer to the Chart of Accounts for exact wording of account titles.

PAGE $1$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

Dec. $31$

Cash

Discount on Bonds Payable

Bonds Payable

b$.$ Amortized bond discount for a full year, using the straight$-$line method, on December $31.$ Refer to the Chart of Accounts for exact wording of account titles.

PAGE $1$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

Dec. $31$

c$.$ Called bonds at $98.$ Assume the bonds were carried at $$2,692,250$ at the time of the redemption on December $31.$ Refer to the Chart of Accounts for exact wording of account titles.

PAGE $1$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

Dec. $31$