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Exercise 10-5 Straight-Line: Recording bond issuance and discount amortization LO P2 Paulson Company issues 8%, four-year bonds, on January 1 of this year, with a
Exercise 10-5 Straight-Line: Recording bond issuance and discount amortization LO P2 Paulson Company issues 8%, four-year bonds, on January 1 of this year, with a par value of $97,000 and semiannual interest payments. (0) (1) (2) Semlonul Period - End January 1, Issuance June 30, first payment December 31, second payment Unamortized Discount $6,673 5,839 5,005 Carrying Value $90,327 91,161 91,995 Use the above straight-line bond amortization table and prepare journal entries for the following fa) The issuance of bonds on January 1 (b) The first interest payment on June 30. (c) The second interest payment on December 31 Journal entry worksheet 1 2 3 > Record the issue of bonds with a par value of $97,000 cash January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Cash Discount on bonds payable Bonds payable 90.327 6.673 a 97.000 Record entry Clear entry View general journal View transaction list Journal entry worksheet
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