On March 1, 20x7, the Van Wurt Corporation issued $600,000 of 10 percent, five-year bonds. The semiannual interest payment dates are February 28 and August 31. Because the market rate for similar investments was 11 percent, the bonds had to be issued at a discount. The discount on the issuance of the bonds was $24,335. The company’s fiscal year ends February 28. Prepare entries in journal form to record the bond issue on March 1, 20x7, the payment of interest, and the amortization of the discount on August 31, 20x7 and on February 28, 20x8. Use the effective interest method. (Round answers to the nearest dollar.)

Bond Retirement