On May 1, 2013, MEM Corp. issued $900,000 of five-year, 7% bonds at 103. The bonds pay

Question:

On May 1, 2013, MEM Corp. issued $900,000 of five-year, 7% bonds at 103. The bonds pay interest annually on May 1. MEM's year end is April 30.
Instructions
(a) Record the issue of the bonds on May 1, 2013.
(b) Record the accrual of interest on April 30, 2014, assuming the amortization amount is $4,763.
(c) What amounts related to the bonds would be reported as current and non-current in the liabilities section of MEM's April 30, 2014, balance sheet?
(d) Record the payment of interest on May 1, 2014.
(e) Assume that on May 1, 2014, after payment of the interest, MEM redeems all of the bonds at 104. Record the redemption of the bonds.
Taking It Further
What was the market rate of interest on May 1, 2013, when MEM issued the bonds?