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  3. a) prepare the journal entry to record the payment

a) Prepare the journal entry to record the payment of interest on July 1, 2021....

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Accounting

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a) Prepare the journal entry to record the payment of interest on July 1, 2021.

b) Prepare the journal entry to accrue the interest expense on December 31, 2021.

c) Prepare the journal entry to record the payment of interest on January 1, 2022.

d) Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 100 on January 1, 2023.3

e) Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 94.

On January 1, 2021, Sunland Ltd. issued $590,000 of 5%, 5-year bonds. The bonds were issued to yield a market interest rate of 6%. Sunland's year end is December 31. On January 1, 2023 immediately after making and recording the semi-annual interest payment, Sunland redeemed the bonds. A partial bond amortization schedule is presented below. Interest Payment Interest Expense Amortization Semi-Annual Interest Period Jan. 1, 2021 July 1, 2021 Jan. 1, 2022 July 1, 2022 Jan. 1, 2023 14,750 14,750 14,750 14,750 $16,945 17,011 17,079 17,149 $2,195 2,261 2,329 2,399 Bond Amortized Cost $564,836 567,031 569,292 571,621 574,020

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