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Practice Exercise 14-3 On September 30, 2012, Blossom Company issued 9% bonds with a par...

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Practice Exercise 14-3 On September 30, 2012, Blossom Company issued 9% bonds with a par value of $400,000 due in 20 years. They were issued at 97 and were callable at 103 at any date after September 30, 2017. Because Blossom 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 7% bonds were sold in the amount o $700,000 at 102; they mature n 20 years. Bosso Company uses straight-line armortization terest payment dates are March 31 and Septmber 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 (To record the redemption of old issue) (To record the sale of new issue)

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