On March 1, Gescan Electric Inc. issued and sold $312,000, 7 year bonds with an interest rate of 9%. The market rate at the time of issue was 10%. Any premium or discount on the bond is amortized using the effective interest rate method. Interest will be paid annually on February 28. The Present value of 1 and annuity of 1 of 10% for 6 periods are 0.5132 and 4.8684, respectively. Use a 4 decimal factor for the bond calculation. 

Prepare journal entries.

Answer rating: 100% (QA)

To prepare journal entries for the issuance and subsequent amortization of the bonds well go step by step 1 Initial Issuance on March 1 Debit Cash 312... View the full answer