Question
Paulson Company issues four-year 6% bonds on December 31, 2017, with a face value of $90,000 and semiannual interest payments. Semester-End Period discount not amortized
Paulson Company issues four-year 6% bonds on December 31, 2017, with a face value of $90,000 and semiannual interest payments.
| Semester-End Period | discount not amortized | Value in books | ||||||
| (0) | 31/12/2017 | ps | 6,533 | ps | 83,467 | |||
| (1) | 30/06/2018 | 5,716 | 84,284 | |||||
| (2) | 31/12/2018 | 4,899 | 85,101 | |||||
Use the straight-line bond amortization table above 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.
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a Journal entry for the issuance of bonds on December 31 2017 Date December 31 2017 Debit Cash 90000 ...
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
