Sanders Corporation issued $460,000 of 8%, 10-year bonds payable at a price of 96. The market...

Transcribed Image Text:

Sanders Corporation issued $460,000 of 8%, 10-year bonds payable at a price of 96. The market interest rate at the date of issuance was 9%, and the bonds pay interest semiannually. The journal entry to record the fest semiannual interest payment using the effective-interest amortization method is Interest Expense 10,872 Discount on Bonds Payable 1472 Cash 18,400 OB Date Accounts and Explanation Debit Credit Interest Expense 22,172 Discount on Bonds Payable Cash 1.472 20.700 Date Accounts and Explanation Debit Credit Interest Expense 22.172 Discount on Bonds Payable Cash 1472 OD Date Accounts and Explanation Debil Interest Expense 19872 20.700 Cred Discount on Bonds Payable 1.472 Next Sanders Corporation issued $460,000 of 8%, 10-year bonds payable at a price of 96. The market interest rate at the date of issuance was 9%, and the bonds pay interest semiannually. The journal entry to record the fest semiannual interest payment using the effective-interest amortization method is Interest Expense 10,872 Discount on Bonds Payable 1472 Cash 18,400 OB Date Accounts and Explanation Debit Credit Interest Expense 22,172 Discount on Bonds Payable Cash 1.472 20.700 Date Accounts and Explanation Debit Credit Interest Expense 22.172 Discount on Bonds Payable Cash 1472 OD Date Accounts and Explanation Debil Interest Expense 19872 20.700 Cred Discount on Bonds Payable 1.472 Next