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On April Bridgeport Company sold of its year, $ face value bonds at Interest payment dates are April and October and the company uses the straightline method of bond discount amortization. On March Bridgeport took advantage of favorable prices of its stock to extinguish of the bonds by issuing shares of its $ par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $ per share on March
Prepare the journal entries needed on the books of Bridgeport Company to record the following. Do not round intermediate calculations. If no entry is required, select No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.
a April : issuance of the bonds.
b October : payment of semiannual interest.
c December : accrual of interest expense.
d March : extinguishment of bonds. No reversing entries made.
