On March 1, 2012, Lloyd Corporation sold $400,000 of 12 percent, 5-year bonds at a yield of 10 percent compounded semiannually. Interest is payable on March 1 and September 1 of each year. The corporation is a calendar-year corporation. Bond premiums and discounts are amortized on interest-paying dates and at year-end.
Prepare the journal entries that are appropriate to account for these bonds on the following dates (Round amounts to the nearest dollar.): March 1, 2012; September 1, 2012; and December 31, 2012. Use the effective-interest method of amortization.

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The Answer of On March 1, 2012, Lloyd Corporation sold $400,000 of 12 percent, 5-year bonds at a yield of 10 percent compounded semiannually. Interest is payable on March 1 and September 1 of each year. The corporation is a calendar-year corporation. Bond premiums and discounts are amortized on interest-paying dates and at year-end.
Prepare the journal entries that are appropriate to account for these bonds on the following dates (Round amounts to the nearest dollar.): March 1, 2012; September 1, 2012; and December 31, 2012. Use the effective-interest method of amortization.

On March 1, 2012, Lloyd Corporation Sold $400,000 of 12