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Need help fixing Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments.
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Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Semiannual Period-End (@ January 1, issuance (1) June 30, first payment (2) December 31, second payment Unamortized Premium $16, 222 14,600 12,978 Carrying Value $216, 222 214,600 212,978 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. No Date General Journal Debit Credits 1 January 01 Cash 216,222 16,222 X Bonds payable Premium on bonds payable 200,000 2 June 30 Bond interest expense 8,378 1,622 Premium on bonds payable Cash 10,000 December 31 8,378 Bond interest expense Premium on bonds payable Cash 1,622 10,000
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