BONDS ISSUED AT A DISCOUNT Beilke’s Supply Stores issued the following bonds at a discount:

Date of issue and sale: ....April 1, 20-1

Principal amount: ......$400,000

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

Prepare journal entries for:

(a) Issuance of the bonds at a discount.

(b) Interest payment and discount amortization on the bonds on September 30.

(c) Year-end adjustment on the bonds.