(Show work and Calculations) On February 1, 2011, M&N company issued $100,000 of 5 year bonds, paying...

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Accounting

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On February 1, 2011, M&N company issued $100,000 of 5 yearbonds, paying 8% interest every July 31 and January 31. The bondssold for $92,278 reflecting the market rate at the time of 10%.Prepare all bond related journal entries that M&N should haverecorded through January 31, 2012, the date of the second interestpayment, supported by an amortization schedule covering that same12-month period. Do not recalculate issuance proceeds.

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Present value of Bond 92278 Less face value of Bond 100000 Discount on Bond payable 7722 Fair value Interest payment Credit Cash Face value of bond Coupon rate 100000 4 4000 Interest Expense Debit Interest Expense book value of Bond for previous period Market or Discounting rate Amortization of bond Discount Credit Bond Discount Interest Expense Interest payment Debit See Answer

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