Preparing a Bond Amortization Table (Straight Line)

Edmonton-Alston Corporation issued 5-year, 9.5% bonds with a total face value of $700,000 on January 1, 2020, for $726,000. The bonds pay interest on June 30 and December 31 of each year.

Required:

1. Prepare an amortization table. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0".

Edmonton-Alston Corporation
Amortization Table
Period	Cash Payment (Credit)	Interest Expense (Debit)	Premium on Bonds Payable (Debit)	Premium on Bonds Payable Balance	Carrying Value
At issue	$	$	$	$	$
6/30/20
12/31/20
6/30/21
12/31/21
6/30/22
12/31/22
6/30/23
12/31/23
6/30/24
12/31/24

2. Prepare the entries to recognize the interest payments made on June 30, 2020, and December 31, 2020.

2020 June 30
	(Record interest expense)
2020 Dec. 31
	(Record interest expense)