Part 2 infor for accounting Wk4

Wk 4 P22- 10A

Bonds Issued At A Discount Emerald, Inc., issued the following bonds at a discount:

Date of issue and sale April 1, 20-1

Principal amount $500,000

Sale price of bonds 97

Denomination of bonds $1,000

Life of Bonds 20 years

Stated rate 8%, payable semiannually on September 30 and March 31

Required:

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