Journal entries-Long term Liabilities

8. On May 1, 2020, Hrd Corporation issued a 4-year bond worth $396,000 with an interest rate of 9% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 6%. Hrd Corporation amortizes any pre- mium or discount using the effective interest method. Calculate the bond issue price and the resulting premium or discount. Bond Issue Price: $Answerl Premium or Discount: $Answerl b) Prepare journal entries to record the following bonds payable transac- tions.4) Payment of interest and amortization of premium or discount on April 30, 2021. Date Account Title and Explanation Debit Credit Apr 30 Answer Interest Expense Answer Answer Interest Payable Answer Answer Premium on Bonds Payable Answer Cash Answer Answer To record payment of interest and amortization 5) Redemption of the bond for its face value one year before maturity on May 1. Date Account Title and Explanation Debit Credit. May 1 Answer Bonds Payable Answer Premium on Bonds Payable Answer Answer Cash Answer Answer Redemption of bond