On May 1, 2021, Sunland Corp. issued $870,000 of 5-year, 7% bonds at 96. The bonds pay interest annually on May 1. Sunland's year end is April 30.

Record the issue of the bonds on May 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
May 1

Calculate the effective rate of the bonds using Excel or a financial calculator. (Round answer to 4 decimal places, e.g. 1.5751.)

Effective rate

%

Prepare an effective interest amortization table for this bond. (Round answers to 0 decimal places, e.g. 5,276.)

Sunland CORP. Bond Discount Amortization Table Effective Interest MethodAnnual Interest Payments
Date		Interest Payment		Interest Expense		Discount Amortization		Bond Amortized Cost
May 1, 2021		$		$		$		$
May 1, 2022
May 1, 2023
May 1, 2024
May 1, 2025
May 1, 2026

Record the accrual of interest at April 30, 2022.

Date	Account Titles and Explanation	Debit	Credit
Apr. 30
	(To accrue interest expense.)

May 1
	(To record interest payment.)

Date	Account Titles and Explanation	Debit	Credit
May 1
	(To record redemption of bonds.)