Chapter 9
Investments
476
b) Assume the issuer’s accountant is using the effective interest method. Prepare the journal
entries from the bond issuer’s perspective for the issue date of the bonds, first interest
payment, first year-end adjustment and retirement of bonds on March 1, 2021. (Note: Do
not record the last interest payment on March 1, 2021.)
Date
Account Title and Explanation
Debit
Credit
