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-End Unamortized
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-End | Unamortized Discount | Carrying Value | |
|---|---|---|---|
| (0) | January 1, issuance | $ 6,833 | $ 98,167 |
| (1) | June 30, first payment | 5,979 | 99,021 |
| (2) | December 31, second payment | 5,125 | 99,875 |
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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Global Financial Accounting And Reporting Principles And Analysis
Authors: Walter Aerts, Peter Walton
5th Edition
1473767121, 9781473767126
