Accounting Help 11

Below please find the data for P 22-10B. P 22-10B (LO4) ✓ 2. Carrying value, Sept. 30, Year 2: $579,600  BONDS ISSUED AT A DISCOUNT Brandon, Inc., issued the following bonds at a discount: Date of issue and sale: April 1, 20-1 Principal amount: $600,000 Sale price of bonds: 96 Denomination of bonds: $1,000 Life of bonds: 10 years Stated rate: 7%, payable semiannually on September 30 and March 31 REQUIRED 1. Prepare journal entries for: (a) Issuance of the bonds at a discount. (b) Interest payment and discount amortization on the bonds on September 30, 20-1. (c) Year-end adjustment on the bonds for 20-1. (d) Reversing entry for the beginning of 20-2. (e) Interest payments and discount amortization on the bonds for 20-2 (March 31 and September 30). 2. Calculate the carrying value of the bonds on September 30, 20-2.