Question

# Woodwick Company issues 6%, five-year bonds, on December 31, 2016, with a par value of \$98,000...

Woodwick Company issues 6%, five-year bonds, on December 31, 2016, with a par value of \$98,000 and semiannual interest payments.

 Semiannual Period-End Unamortized Premium Carrying Value (0) 12/31/2016 \$ 8,071 \$ 106,071 (1) 6/30/2017 7,264 105,264 (2) 12/31/2017 6,457 104,457

Use the above straight-line bond amortization table and prepare journal entries for the following.

(a) The issuance of bonds on December 31, 2016.

(b) The first interest payment on June 30, 2017.

(c) The second interest payment on December 31, 2017.

 Debit Credit December 31, 2016 Cash 106071 Bonds payable 98000 Premium on Bonds payable 8071 June 30, 2017 Interest expense 2133 Premium on Bonds payable 807 =8071-7264 Cash 2940 =98000*6%/2 December 31, 2017 Interest expense 2133 Premium on Bonds payable 807 =7264-6457 Cash 2940 =98000*6%/2

#### Earn Coins

Coins can be redeemed for fabulous gifts.