On January 1, Durkin Limited issues 9%, 20-year bonds payable with a maturity value of ($70,000). The

Question:

On January 1, Durkin Limited issues 9%, 20-year bonds payable with a maturity value of $$70,000$. The bonds sell at 97 and pay interest on January 1 and July 1. Durkin amortizes bond discount by the straight-line method.
Requirements
1. Journalize the issuance of the bonds on January 1.
2. Journalize the semiannual interest payment and amortization of bond discount on July 1.

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