Sanford sells $500,000 of 10% bonds on March 1, 2010. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2013. The bonds yields 12%.
Prepare all relevant journal entries through December 31, 2011 under both IFRS and US GAAP. Use effective interest method for discount and premium amortization (construct an amortization table where applicable).