Ally Company issued $4,000,000 of 7%, 12-year bonds on January 1, 2018, for $3,731,582. The market or effective interest rate is 9%. Interest is paid annually on each January 1^st, and the effective-interest method of amortization is to be used.

Provide the journal entry to record issuance of these long-term bonds. (You may or may not need all rows of this textbox).

Provide the end of the year adjusting journal entry (for Dec. 31, 2018) to record accrued Interest Expense for this bond (using the effective-interest method of amortization). (You may or may not need all rows of this textbox).

Provide the journal entry required on Jan. 1, 2019, when the interest is paid. (You may or may not need all rows of this textbox).

Using a T account post (show) the above entries to the Discount on Bond PayableT-account. What is the accounts balance?

What is the Bond Carrying Value that would appear on Allys 12/31/18 Balance Sheet?