Exercise 10-5 (Static) Straight-Line: Recording bond issuance and discount amortization LO P2

Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments.

	Semiannual Period-End	Unamortized Discount	Carrying Value
(0)	January 1, issuance	$ 13,466	$ 186,534
(1)	June 30, first payment	11,782	188,218
(2)	December 31, second payment	10,098	189,902

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.