On Feb 28, Doherty Logistics, Inc., issued 6%, 20 year bonds payable with a face value of $1,800,000. Bonds pay interest on feb 28 and aug 31. mackerel corp amortizes bond discount by straight line method.

3. Assume that issue price of bonds is 96. journalize the following.

a. Issuance of the bonds on feb 28 2016

b. Payment of interest and amortization of discount on aug 31 2016

c. Accrual of interest and amortization of discount on dec 31 2016, the year-end

d. Payment of interest and amortization of premium on feb 28 2017

4. report interest payable and bonds payable as they would appear on the mackerel corp balance sheet at dec 31 2016