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Sunland Ltd. sold $6,440,000 of 12% bonds, which were dated March 1, 2017, on June...

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Accounting

Sunland Ltd. sold $6,440,000 of 12% bonds, which were dated March 1, 2017, on June 1, 2017. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2027, and the bonds were issued to yield 14%. Sunland's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2018, Sunland bought back $2,440,000 worth of bonds for $2,340,000 plus accrued interest.

Prepare the entry for the issuance of the bonds.

Prepare the journal entry for the scheduled interest payment on September 1, 2017.

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