Prepare the journal entries to record the bond issue

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Reference no: EM133667299

Problem: Effective Interest Method E9A. On March 1, 20XX, Minnow Corporation issued $600,000 of 10 percent, five year bonds. The semiannual interest payment dates are February 28 and August 31. Because the market rate for similar investments was 11 percent, the bonds had to be issued at a discount. The discount on the issuance of the bonds was $24,335. The company's fiscal year ends February 28. Prepare the journal entries to record the bond issue on March 1, 20XX, the payment of interest, and the amortization of the discount on August 31, 20XX and on February 28, 20XX. Use the effective interest method.

Reference no: EM133667299

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