P 22-10B (LO4)

2. Carrying value, Sept. 30, Year 2: $579,600

BONDS ISSUED AT A DISCOUNT Brandon, Inc., issued the following bonds at a discount:

REQUIRED

1. Prepare journal entries for:

(a) Issuance of the bonds at a discount.

(b) Interest payment and discount amortization on the bonds on September 30, 20-1.

(c) Year-end adjustment on the bonds for 20-1.

(d) Reversing entry for the beginning of 20-2.

(e) Interest payments and discount amortization on the bonds for 20-2 (March 31 and September 30).

2. Calculate the carrying value of the bonds on September 30, 20-2.