Instructions: For the case prepare all of the relevant journal entries from the time of sale until the date indicated. Use the effective interest method for discount and premium amortization (construct amortization tables where applicable). Amortize premium or discount on interest dates and at year-end. (Assume that no reversing entries were made.) 1. Sandford Co. sells bonds on March 1, 2017. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2020. Pertinent information follows: Par value of the bonds Stated interest rate Bond yield rate $ 500,000 10% 12% Give the entries through December 31, 2018. Sanford Co. Calculation of issue price and discount using Excel's PV function: Please Review Schedule of Bond Discount Amortization Effective Interest Method 10% Bonds Sold to Yield 12% Cash Interest Bond Carrying Date Mar 1, 17 Sep 1, 17 Mar 1, 18 Sep 1, 18 Mar 1, 19 Sep 1, 19 Mar 1, 20 Sep 1, 20 Please Review Please Review Please Review Please Review Please Review Please Review Please Review Debit Credit 3/1/17 Please Review Please Review Please Review 9/1/17 Please Review Please Review Please Review 12/31/17 Please Review Please Review Please Review 3/1/18 Please Review Please Review Please Review Please Review 9/1/18 Please Review Please Review Please Review 12/31/18 Please Review Please Review Please Review