On 1st April, 2012, Seminole Company sold 21,600 of its 11 percent, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and company uses the straight-line method of bond discount amortization. On 1st March, 2013, Seminole took advantage of favorable prices of its stock to extinguish 6,800 of bonds by issuing 224,400 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 $ 33 per share on 1st March, 2013.
Create the journal entries needed on the books of Seminole Company to record the subsequent. (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a) 1st April, 2012: issuance of the bonds.
(b) 1st October, 2012: payment of semiannual interest.
(c) 31st December, 2012: accrual of interest expense.
(d) 1st March, 2013: extinguishment of 6,800 bonds.
Additional Requirements
interest payable ________
interest expense ________
cash 311,667
discount on bonds payable ________
Bonds payable 6,800,000
discount on bonds payable ________
common stock 2,244,000
paid-in capital in excess
par common stock ________