Recording the Effects of Bonds

the following year.

Note: Round answers to the nearest whole dollar.

b$.$ Post the journal entries to their respective T$-$accounts.

$-$Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account.

Note: Round answers to the nearest whole dollar.Recording the Effects of Bonds

On April $30$ Cheng, Inc., issued $$325,000$ of $6\%,15-$year bonds for $$268,801,$ yielding an effective interest rate of $8\%.$ Semiannual interest is payable on October $31$ and April $30$ each year. The firm uses the effective interest method to amortize the discount.

a$.$ Prepare journal entries to report $(1)$ the bond issuance on April $30,(2)$ the bond interest payment and discount amortization at October $31,(3)$ the adjusting entry to record bond interest expense and discount amortization at December $31,$ the close of the firm$$s accounting year, and $(4)$ the bond interest payment and discount amortization at April $30$ of the following year.

$$ Note: Round answers to the nearest whole dollar.