Chapter 11, E9B 2014 Maг. Sold 6%, 5-year bonds at a discount Aug. 31 Paid semiannual interest and amortized the discount on 6%, 5-year bonds (payment) (expense) (amortization) х х х 2015 Feb. 28 To record accrued semiannual interest and amortize the discount on 6%, 5 year bonds ) x I] (expense) (payment) (amortization) х х х
Chapter 11, E9B 2014 Maг. Sold 6%, 5-year bonds at a discount Aug. 31 Paid semiannual interest and amortized the discount on 6%, 5-year bonds (payment) (expense) (amortization) х х х 2015 Feb. 28 To record accrued semiannual interest and amortize the discount on 6%, 5 year bonds ) x I] (expense) (payment) (amortization) х х х
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Effective Interest Method
E9B. On March 1, 2014, Munsey Corporation issued $1,200,000 of 6 percent, fiveyear bonds. The semiannual interest payment dates are February 28 and August 31.
Because the market rate for similar investments was 7 percent, the bonds had to be
issued at a discount. The discount on the issuance of the bonds was $49,900. The company’s fiscal year ends February 28. Prepare the
issue on March 1, 2014, the payment of interest, and the amortization of the discount
on August 31, 2014 and on February 28, 2015. Use the effective interest method.
(Round to the nearest dollar.)
![Chapter 11, E9B
2014
Maг.
Sold 6%, 5-year bonds at a discount
Aug. 31
Paid semiannual interest and amortized
the discount on 6%, 5-year bonds
(payment)
(expense)
(amortization)
х
х
х
2015
Feb. 28
To record accrued semiannual interest
and amortize the discount on 6%, 5 year bonds
) x
I] (expense)
(payment)
(amortization)
х
х
х](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4cad0cff-46d6-4a6f-b329-d3116bd01423%2Fa47a8256-1acb-4ad7-a377-adc1d817ac62%2Fpej3hxg.jpeg&w=3840&q=75)
Transcribed Image Text:Chapter 11, E9B
2014
Maг.
Sold 6%, 5-year bonds at a discount
Aug. 31
Paid semiannual interest and amortized
the discount on 6%, 5-year bonds
(payment)
(expense)
(amortization)
х
х
х
2015
Feb. 28
To record accrued semiannual interest
and amortize the discount on 6%, 5 year bonds
) x
I] (expense)
(payment)
(amortization)
х
х
х
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