Question
On January 1, a company issues 8%, four-year bonds with a par value of $97,000 and semiannual interest payments. Following are the first few rows
On January 1, a company issues 8%, four-year bonds with a par value of $97,000 and semiannual interest payments. Following are the first few rows of the straight-line amortization table.
| Semiannual Period-End | Unamortized Discount | Carrying Value | |
|---|---|---|---|
| (0) | January 1, issuance | $ 6,673 | $ 90,327 |
| (1) | June 30, first payment | 5,839 | 91,161 |
| (2) | December 31, second payment | 5,005 | 91,995 |
Prepare journal entries for the following transactions.
| January 1 | Bond issuance. |
|---|---|
| June 30 | First interest payment. |
| December 31 | Second interest payment. |
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
