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On March 1, 2023, Nixon Corp. issued a $600,000, 5% two-year bond at a discounted...

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Accounting

On March 1, 2023, Nixon Corp. issued a $600,000, 5% two-year bond at a discounted price of 98 when the market interest rate was 6% on the date of issue. Interest is payable semi-annually each September 1, and March 1.

Using the straight-line interest method, prepare the journal entries to record the following events.

  1. Bond issuance on March 1, 2023:

Debit Credit

  1. First interest payment on September 1, 2023:

Debit Credit

  1. Second interest payment:

Date Debit Credit

  1. Payoff of bond back to bond holders (please include date):

Date Debit Credit

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