#1 Cash 291,000 Oct.

1
Unam Bond discount 9,000
Bonds Payable 300,000
Issuance of $300,000 10% at 97%.
Dec-31 Recognize the accrual of 3 months
#2 Bond Ineterest Expense 8,003
Unam Bond Discount 503
Bond Interest Payable 7,500

300,000 0.1 0.25 7,500 Face Value and Face Interest

291,000 0.11 0.25 8,003 Market Value and Market Interest

April first paying the first 6 months of interest

Bond Interest Expense 8,003
#3 Bond Interest Payable 7,500
Unamortized Bond Discount 503
Cash 15,000