On March 1, 2011, five-year bonds are sold for $508,026 that have a face value of $500,000 and an interest rate of 10%. Interest is paid semi-annually on March 1 and September 1. Using the straight-line amortization method, prepare the borrower's journal entries on:
March 1, 2011; September 1, 2011; December 31, 2011; and March 1, 2012.

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The Answer of On March 1, 2011, five-year bonds are sold for $508,026 that have a face value of $500,000 and an interest rate of 10%. Interest is paid semi-annually on March 1 and September 1. Using the straight-line amortization method, prepare the borrower's journal entries on:
March 1, 2011; September 1, 2011; December 31, 2011; and March 1, 2012.

On March 1, 2011, Five-Year Bonds Are Sold for $508,026