Question
Paulson Company issues 6%, four-year bonds, on December 31, 2017, with a par value of $100,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying
Paulson Company issues 6%, four-year bonds, on December 31, 2017, with a par value of $100,000 and semiannual interest payments.
| Semiannual Period-End | Unamortized Discount | Carrying Value | ||||||
| (0) | 12/31/2017 | $ | 6,733 | $ | 93,267 | |||
| (1) | 6/30/2018 | 5,891 | 94,109 | |||||
| (2) | 12/31/2018 | 5,049 | 94,951 | |||||
Use the above straight-line bond amortization table and prepare journal entries for the following.
(a) The issuance of bonds on December 31, 2017.
(b) The first interest payment on June 30, 2018.
(c) The second interest payment on December 31, 2018.
Record the issue of bonds with a par value of $100,000 cash December 31, 2017.
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| Dec 31, 2017 | |||
Record the interest payment and amortization on June 30, 2018.
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| Jun 30, 2018 | |||
Record the interest payment and amortization on December 31, 2018.
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| Dec 31, 2018 | |||
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