On March 1, 20x1, the Eddy Corporation issued $1,200,000 of 10 percent, five-year bonds. The semiannual interest
Question:
On March 1, 20x1, the Eddy Corporation issued $1,200,000 of 10 percent, five-year bonds. The semiannual interest payment dates are March 1 and September 1 . Because the market rate for similar investments was 1 1 percent, the bonds had to be issued at a discount. The discount on the issuance of the bonds was $48,670. The company's fiscal year ends February 28. Prepare entries in journal form to record the bond issue on March 1, 20x1; the payment of interest and the amortization of the discount on September 1 , 20x 1 ; the accrual of interest and the amortization of the discount on February 28, 20x2; and the payment of interest on March 1, 20x2. Use the effective interest method. (Round answers to the nearest dollar.) E-1
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: