Question
Paulson Company issues 6%, four-year bonds, on December 31, 2013, with a par value of $200,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying
| Paulson Company issues 6%, four-year bonds, on December 31, 2013, with a par value of $200,000 and semiannual interest payments. |
| Semiannual Period-End | Unamortized Discount | Carrying Value | ||||||
| (0) | 12/31/2013 | $ | 13,466 | $ | 186,534 | |||
| (1) | 6/30/2014 | 11,782 | 188,218 | |||||
| (2) | 12/31/2014 | 10,098 | 189,902 |
| Use the above straight-line bond amortization table and prepare journal entries for the following. |
| (a) | The issuance of bonds on December 31, 2013. |
| (b) | The first interest payment on June 30, 2014. |
| (c) | The second interest payment on December 31, 2014. |
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Business Law
Authors: Henry Cheeseman
10th Edition
0134728785, 978-0134728780
