On March 1, 20xx, Westward Freight Company sold S100,000 of its 9.5 percent, 20-year bonds at 106.
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On March 1, 20xx, Westward Freight Company sold S100,000 of its 9.5 percent, 20-year bonds at 106. The semiannual interest payment dates are March 1 and September 1 . The market interest rate is about 8.9 percent. The company's fiscal year ends August 3 1 . Prepare entries in journal form to record the sale of the bonds on March 1 , the accrual of interest and amortization of premium on August 3 1 , and the first interest payment on September 1. Use the effective interest method to amortize the premium.SE-1
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