July 1. Mr. Burns issued $600,000, 10 years (semi annual payments) coupon rate of 10%, market rate of 12%. Mr. Smithers gave this bond the code name Bond #1July 1. Mr. Burns issued $600,000, 10 years (semi annual payments) coupon rate of 10%, market rate of 12%. Mr. Smithers gave this bond the code name Bond #1

32. December 31: Mr. Burns made interest payment on Bond #1. Use effective interest method. The payments are considered to be ordinary annuities

Interest Expense

Discount on Bonds Payable

Cash