Reference no: EM131208696

GIT Inc., issued $640,000 of 5%, 10-year bonds payable at a price of 73.985 on March31, 2012. The market interest rate at the date of issuance was 9%, and the GIT bonds pay interest semiannually. 1. Prepare aneffective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar. . Record GIT, Inc.'s issuance of the bonds on March31, 2012, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2012. Explanations are not required. 1. Prepare aneffective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar. A B C D E Interest Interest Expense Discount Bond Payment (4.5% of Discount Account Carrying Semiannual (2.5% of Preceeding Bond Amortization Balance Amount Interest Date Maturity Value) Carrying Amount) (B-A) (D-C) ($640,000-D) Mar 31, 2012 Sept 30, 2012 Mar 31, 2013 Sept 30, 2013 2. Record GIT Inc.'s issuance of the bonds on March31, 2012, and payment of the first semiannual interest amount and amortization of the bond discount on September30, 2012. (Record debitsfirst, then credits Explanations are notrequired.) Start by recording the issuance of bonds on March31, 2012. Journal Entry Date Accounts Debit Credit Mar 31 Now record the payment of the first semiannual interest amount and amortization of the bond discount on September 30, 20122012. Journal Entry Date Accounts Debit Credit Sept 30.