QS 14-13 Issuance of bond at discount, recording interest payment and accrual LOS Bonanza Graphics Inc. issued a $200,000, 8%, three-year bond on November 1, 2020, for cash of $194,792. Interest is to be paid quarterly. The annual market rate of interest is 9%. Assume a year-end of December 31. The amortization schedule, using the effective interest method, is shown below: Period Ending (A) Cash Interest Paid $200,000 8% 3/12 (B) Period Interest Expense (E) 9% 3/12 (C) Discount Amort. (B)-(A) (D) Unamortized (E) Carrying Value Discount $200,000-(D) Nov. 1/20. $5.208 $194,792 Feb. 1/21. $ 4,000 $ 4,383 $ 383 4,825 195,175 Aug. 1/23. 4,000 4.478 478 492 199.508 Nov. 1/23. 4,000 4,492 492 a 200,000 Totals. $48,000 $53,208 55,208 "Aquited for rounding a. Record the issuance of the bond on November 1, 2020. b. Record the accrual of bond interest at year-end. December 31, 2020, and the subsequent payment on February 1, 2021.