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On March 1, 2015, Piper Co. issued ten-year bonds with a face value of $500,000...

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Accounting

On March 1, 2015, Piper Co. issued ten-year bonds with a face value of $500,000 and a stated interst rate of 10%, payable semiannually on September 1 and March 1 of each year. The market rate for bonds of this type and risk is 6%.

Present value of $1 for 20 periods at 3% = 0.55368

Present value of annuity for 20 periods at 3% = 14.87747

Using the effective interest method, what are the journal entries for the first year, through March 1, 2016.

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