Question

On March 1, 2011, Fast Freight Company sold Rs. 400,000 of its 9 percent, 20-year bonds at 109.9. The semiannual interest payment dates are March 1 and September 1. The market interest rate is 8 percent. The firm's fiscal year ends August 31. Prepare entries in journal form to record the sale of the bonds on March 1, the accrual of interest and amortization of premium on August 31, and the first inferest payment on September 1. Use the effective interest method to anmortize the premium.​

Answer 1

profit 56%

loss 78%

hope it helps

Answer 2

Answer:

profit 56

Explanation:

loss 48........