Required:

Record the journal entries on the following dates

September 1, 2017

September 1, 2018

The Bond was retired on Sept 1, 2019, for cash of $405,110

On September 1, 2017, Contact Incorporated issued a 400,000, 15%, four-year bond. Interest is paid semi-annually beginning March 1, 2018. (a) (b) (c) (d) (e) Cash Interest Period Interest Amort Carrying Value Unamortized (e) x 13.5% * 6/12 (a) - (b) $400,000 x Period Ending 15% * 6/12 Sept 1/17 Mar. 1/18 30,000 Sept. 1/18 30,000 Mar. 1/19 30,000 Sept. 1/19 30,000 Mar. 1/20 30,000 Sept. 1/20 30,000 Mar. 1/21 30,000 Sept. 1/21 30,000 Totals 240,000 28,221 28,101 27,973 27,836 27,690 27,534 27,367 27,189 221,911 1,779 1,899 2,027 2,164 2,310 2,466 2,633 2,811 18,089 18.089 16,310 14,411 12,384 10.220 7,910 5,444 2,811 0 $400,000 + (d) 418,089 416,310 414,411 412,384 410,220 407,910 405,444 402,811 400.000