Exercise 10-8 Straight-Line: Recording bond issuance and premium amortization LO P3 Wookie Company issues 7%, five-year bonds, on January 1 of this year, with a par value of $101,000 and semiannual interest payments. (0) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $8,131 7,318 6,505 Carrying Value $109, 131 108,318 107,505 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. Journal entry worksheet Record the issuance of the bonds on January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal Journal entry worksheet Record the first interest payment on June 30. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 Record the second interest payment on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal