Paulson Company issues 6%, four-year bonds, on January 1 of this
year, with a par value of $100,000 and semiannual interest
|Semiannual Period-End||Unamortized Discount||Carrying Value|
|(0)||January 1, issuance||$||6,733||$||93,267|
|(1)||June 30, first payment||5,891||94,109|
|(2)||December 31, second payment||5,049||94,951|
Use the above straight-line bond amortization table and prepare journal entries for the following.
(a) The issuance of bonds on January 1.
(b) The first interest payment on June 30.
(c) The second interest payment on December 31.
|Discount on Bonds payable||6733|
|June 30||Interest expense||3842|
|Discount on Bonds payable||842||=6733-5891|
|Dec 31||Interest expense||3842|
|Discount on Bonds payable||842||=5891-5049|
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