E14-23 (similar to)Question Help

On June30, Daughtry Limited issues 6%, 20-year bonds payable with a face value of $110,000. The bonds are issued at 90 and pay interest on June 30 and December 31. (Assume bonds payable are amortized using thestraight-line amortizationmethod.)

Requirements

1. Journalize the issuance of the bonds on June 30.

2. Journalize the semiannual interest payment and amortization of the bond discount on December 31.