On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-yearbonds. The bonds pay interest semi-annually,...

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On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-yearbonds. The bonds pay interest semi-annually, on September 30 andMarch 31. The first interest payment is on September 30, 2020. Thebonds are issued at a price of 114¹/₄ (i.e.,$228,500). The issuance price implies an effective interest rate of7%. Bond issue costs are $10,000, which are amortized using thestraight-line method. Adtech’s fiscal year-end is on December31.
1.Prepare all necessary journal entries in relation tothese bonds between March 30, 2020 and April 1, 2021.
2. What is the amount of the liability that Adtech hasto the bondholders on September 30, 2021, after the interestpayment on that date?

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In: AccountingOn March 31, 2020, Adtech Inc. issued $200,000, 9%,10-yearbonds. The bonds pay interest semi-annually, on...On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-yearbonds. The bonds pay interest semi-annually, on September 30 andMarch 31. The first interest payment is on September 30, 2020. Thebonds are issued at a price of 1141/4 (i.e.,$228,500). The issuance price implies an effective interest rate of7%. Bond issue costs are $10,000, which are amortized using thestraight-line method. Adtech’s fiscal year-end is on December31.1.Prepare all necessary journal entries in relation tothese bonds between March 30, 2020 and April 1, 2021.2. What is the amount of the liability that Adtech hasto the bondholders on September 30, 2021, after the interestpayment on that date?