Refer to the amortization schedule prepared in Problem 15-3A. Assume JetCom Inc. has a January 31 year-end.
Record the following entries:
a. Issuance of the bonds on June 1, 2014,
b. Payment of interest on December 1, 2014,
c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2015,
d. Payment of interest on June 1, 2015.
Show how the bonds will appear on the balance sheet under long-term liabilities at January 31, 2016.