(Show work and Calculations)
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.
