Question
Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $105,000 and semiannual interest payments. Semiannual Period-EndUnamortized DiscountCarrying
Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $105,000 and semiannual interest payments.
Semiannual Period-EndUnamortized DiscountCarrying Value(0)January 1, issuance$6,833$98,167(1)June 30, first payment5,97999,021(2)December 31, second payment5,12599,875
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.
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Managerial Accounting
Authors: Ray Garrison, Theresa Libby, Alan Webb
10th Canadian edition
978-1259024900
