Answer and Explanation:
The journal entries are shown below:
On March 1
Cash or bank Dr $9,000,000
To Bond payable $9,000,000
(being the issuance of the bond for cash is recorded)
On Sep 1
Interest expense $450,000
To Cash $450,000
(Being the interest expense for cash is paid)
The computation is shown below:
= $9,000,000 × 10% × 6 months ÷ 12 months
= $450,000
On Sep 1
Bond payable $9,000,000
Loss on redemption of bond $180,000 (Balancing figure)
To Cash $9,180,000
(Being the bond issuance is recorded)