The Morris Corporation Has Outstanding $300,000 Face Value of 12 $\$ 3,750$

The Morris Corporation has outstanding $300,000 face value of 12 percent bonds payable dated January 1, 2013, and maturing 10 years later on January 1, 2023. The corporation is required under the bond contract to transfer $30,000 each year to a bond sinking fund investment. The cash in the sinking fund investment is invested to earn interest. Record the following entries on page 6 of a general journal. Omit descriptions. 2013
Dec. 31 Made the annual deposit to the bond sinking fund investment
2014
Dec. 31 Recorded the $\$ 3,750$ earnings on the bond sinking fund investments for the past year
31 Made the annual deposit to the bond sinking fund investment
2015
Dec. 31 Recorded the $\$ 6,600$ earnings on the bond sinking fund investments for the past year
31 Made the annual deposit to the bond sinking fund investment
2023
Jan. 1 Paid the amount due to retire the bonds. Assume that the balance of the Bond Sinking Fund Investment account is $\$ 300,000$

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