Bonanza Graphics Inc. issued a $200,000, 8%, three-year bond on November 1, 2023, for cash of $194,792. Interest is to be paid quarterly. The annual market rate of interest is 9%. Assume a year-end of December 31. A partial amortization schedule, using the effective interest method, is shown below:

*Adjusted for rounding.
a. Record the issuance of the bond on November 1, 2023.
b. Record the accrual of bond interest at year-end, December 31, 2023, and the subsequent payment on February 1, 2024.

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Period Ending Nov. 1/23 Feb. 1/24 Aug. 1/26 Nov. 1/26 Totals (A) Cash Interest Paid $200,000 × 8% * 3/12 $ 4,000 4,000 4,000 $48,000 (B) Period Interest Expense (E) x 9% (C) Discount Amort. (B) x 3/12 - (A) $ 4,383 4,478 4,492* $53,208 $383 478 492 $5,208 (D) Unamortized Discount $5,208 4,825 492 -0- (E) Carrying Value $200,000 - (D) $194,792 195,175 199,508 200,000