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Sanford Co. sells $525, 900 of 10% bonds on March 1, 2014. The bonds pay interest on September 1 and March 1. The due date
Sanford Co. sells $525, 900 of 10% bonds on March 1, 2014. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2017. The bonds yield 8%. Note this is a semi-annual bond, and the number of periods covered by the bonds is 7 6-months periods. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. Difference due to rounding Prepare all of the relevant journal entries from the time of sale until the date indicated. (Assume that no reversing entries were made.)
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