Practice Problem 3-Amortization Schedule-Effective-Interest In the following case, the company closes its books on December 31. Sanford Co. sells $500,000 of 10% bonds on March 1, 2017. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2020. The bonds yield 12%. Instructions Give entries through December 31, 2018.