Effective Method 1.) On August 31, 2013 Pak-It-In Incorporated issued a $2,150,000, 4 year 7% bonds. On the date of issuance the market rate of retur yielded 4%. Bond interest payments are made semiannually. Balance PVE Calculated Balance Face Value Bond I. Cash Payments 2% Beginning Bond Issue Balance Interest Expense Bond Interest Payment Amortization of Premium/Discount Ending Bond Issue Balance Date February 28, 2014 August 31, 2014 February 28, 2015 August 31, 2015 February 29, 2016 August 31, 2016 February 28, 2017 August 31, 2017 2.) On December 31, 2013 Park-It-In Inc prepared the year ending journal entry to account for the interest incurred. 3.) On February 28, 2014 Park-It-In Inc maid interest payments to bond holders. 4.) On August 31, 2014 Park-It-In Inc maid interest payments to bond holders. 5.) On December 31, 2014 Park-It-In Inc prepared the year ending journal entry to account for the interest incurred for 2014 6.) On February 28, 2015 Park-It-In Inc maid the interest payments to bond holders. 7.) On August 31, 2015 Park-It-In Inc maid interest payments to bond holders. 8.) On August 31, 2017 Park-It-In Inc maid interest payments to bond holders, and paid off the balance of the bond. Effective Method 1.) On August 31, 2013 Pak-It-In Incorporated issued a $2,150,000, 4 year 7% bonds. On the date of issuance the market rate of retur yielded 4%. Bond interest payments are made semiannually. Balance PVE Calculated Balance Face Value Bond I. Cash Payments 2% Beginning Bond Issue Balance Interest Expense Bond Interest Payment Amortization of Premium/Discount Ending Bond Issue Balance Date February 28, 2014 August 31, 2014 February 28, 2015 August 31, 2015 February 29, 2016 August 31, 2016 February 28, 2017 August 31, 2017 2.) On December 31, 2013 Park-It-In Inc prepared the year ending journal entry to account for the interest incurred. 3.) On February 28, 2014 Park-It-In Inc maid interest payments to bond holders. 4.) On August 31, 2014 Park-It-In Inc maid interest payments to bond holders. 5.) On December 31, 2014 Park-It-In Inc prepared the year ending journal entry to account for the interest incurred for 2014 6.) On February 28, 2015 Park-It-In Inc maid the interest payments to bond holders. 7.) On August 31, 2015 Park-It-In Inc maid interest payments to bond holders. 8.) On August 31, 2017 Park-It-In Inc maid interest payments to bond holders, and paid off the balance of the bond