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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

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 $109,000 and semiannual interest payments.

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Use the above straight-line bond amortization table and prepare journal entries for the following.

(a) The issuance of bonds on December 31, 2016.

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(b) The first interest payment on June 30, 2017.

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(c) The second interest payment on December 31, 2017.

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Semiannual Period-End () 12/31/2016 (1) 6/30/2017 (2) 12/31/2017 Unamortized Premium $8,291 7,462 6,633 Carrying Value $117,291 116,462 115,633

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