Sanford Co. sells $528,000 of 8% bonds on March 1, 2014. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2017. The bonds yield 12%.Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest rates and at year-end. Schedule of Bond Discount Amortization
Effective-Interest Method
Bonds Sold to Yield

* Difference due to rounding
Prepare all of the relevant journal entries from the time of sale until the date indicated. (Assume that no reversing entries were made.) (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Transcribed Image Text:

Carrying Cash Interest Discount Amount of Date Paid ExpenseAmortizedBonds 3/1/14S S Date ccount Tites and Esplanation Debit Credit 12/31/14 12/31/15