Exercise 14-6 Straight-Line: Recording bond issuance and premium amortization LO P1, P3 Woodwick Company issues 9%, five-year bonds, on December 31, 2016, with a par value of $96,000 and semiannual interest payments. Semiannual Period-End Unamortized Premium Carrying Value 12/31/2016 $8,031 $104,031 (1) 6/30/2017 7,228 103,228 (2) 12/31/2017 6,425 102,425 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on December 31, 2016. (b) The first interest payment on June 30, 2017 (c) The second interest payment on December 31, 2017 View transaction list Journal entry worksheet 1 2 3 Record the issue of bonds with a par value of $96,000 cash on December 31, 2016. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2016 Record entry Clear entry View general journal QS 14-11 Computing payments for an installment note LO C1 On January 1, 2017, MM Co. borrows $420,000 cash from a bank and in return signs an 8% installment note for five annual payments of $105,192 each, with the first payment due one year after the note is signed. (Table B.3) (Use PV factors from table provided.) 1. Prepare the journal entry to record issuance of the note. View transaction list Journal entry worksheet Eagle borrows $28,000 cash by signing a four-year, 5% installment note. Record the issuance of the note on January 1, 2017. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2017 Record entry Clear entry View general journal