Required information

Exercise 10-15 Straight-Line: Amortization and accrued bond interest expense LO P2

[The following information applies to the questions displayed below.] Duval Co. issues four-year bonds with a $117,000 par value on January 1, 2017, at a price of $112,870. The annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31.

Exercise 10-15 Part 2

2. Prepare journal entries to record the first two interest payments. (Round your answers to the nearest dollar amount.)

Journal entry worksheet

Record the interest payment and discount amortization on June 30, 2017.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jun 30, 2017	Bond interest expense
	Cash		5,265
	Discount on bonds payable

Journal entry worksheet

Record the interest payment and discount amortization on December 31, 2017.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31, 2017	Bond interest expense
	Cash		5,265
	Discount on bonds payable