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Your answer is partially correct. On April 1, 2020, Monty Company sold 22,500 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Monty took advantage of favorable prices of its stock to extinguish 5,400 of the bonds by issuing 178,200 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $32 per share on March 1, 2021. Prepare the journal entries needed on the books of Monty Company to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) April 1, 2020: issuance of the bonds. (b) October 1, 2020: payment of semiannual interest. (c) December 31, 2020: accrual of interest expense. (d) March 1, 2021: extinguishment of 5,400 bonds. (No reversing entries made.) Debit Credit No. Date Account Titles and Explanation (a) 4/1/20 Cash 21,825,000 Discount on Bonds Payable 675,000 Bonds Payable 22500000 (b) 10/1/20 Interest Expense 1,260,000 1,200 Discount on Bonds Payable 22,500 Cash 1,237,500 (c) 12/31/20 Interest Expense 630,000 Discount on Bonds Payable 11,250 Interest Payable 618,750 (d) 3/1/21 Interest Expense Interest Payable 148,500 Discount on Bonds Payable Cash 247,500 (To record interest and discount on bonds retired) 3/1/21 Bonds Payable 5,400,000 Loss on Redemption of Bonds Discount on Bonds Payable Common Stock 1,782,000 Paid-in Capital in Excess of Par - Common Stock 3,920,400

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