Question

Presented below are selected transactions on the books of Blossom Corporation May 1, 2020 Bonds payable with a par value of $926,400, which are dated January 1, 2020, are sold at 105 plus accrued interest. They are coupon bonds, bear interest at 11% (payable annually at January 1), and mature January 1, 2030. (Use interest expense account for accrued interest.) Dec. 31 Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight- line amortization.) Jan. 1.2021 Interest on the bonds is paid. April 1 Bonds with par value of $370,560 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) Dec. 31 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, eg. 1.251247 and final answers to O decimal places, es. 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.)

Having trouble figuring what goes in the red boxes, anything helps. Thank You!!

Answer 1

Apr 1, 2021	Bonds Payable	370560
	Premium on bonds payable [46320*(370560/926400)* (105/116)]	16771
	Interest expense	10190
	Cash		388161
	Gain on redemption of bonds [Bal. fig.]		9360
Dec 31,2021	Interest expense	61142
	Interest payable		61142
	[(926400-370560)*11%]
Dec 31,2021	Premium on bonds payable	3354
	Interest expense		3354
	[46320*(555840/926400)* (12/116) + [46320*(370560/926400)* (3/116)]

Any doubt please comment.