Question
Paulson Company issues 7%, four-year bonds, on December 31, 2015, with a par value of $109,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying
| Paulson Company issues 7%, four-year bonds, on December 31, 2015, with a par value of $109,000 and semiannual interest payments. |
| Semiannual Period-End | Unamortized Discount | Carrying Value | ||||||
| (0) | 12/31/2015 | $ | 6,913 | $ | 102,087 | |||
| (1) | 6/30/2016 | 6,049 | 102,951 | |||||
| (2) | 12/31/2016 | 5,185 | 103,815 |
| Use the above straight-line bond amortization table and prepare journal entries for the following. |
| (a) | The issuance of bonds on December 31, 2015. |
| (b) | The first interest payment on June 30, 2016. |
| (c) | The second interest payment on December 31, 2016. |
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Fundamentals Of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia A Libby
3rd Edition
0073527106, 9780073527109
