Question
Woodwick Company issues 10%, five-year bonds, on December 31, 2016, with a par value of $95,000 and semiannual interest payments. Semiannual Period-End Unamortized Premium Carrying
Woodwick Company issues 10%, five-year bonds, on December 31, 2016, with a par value of $95,000 and semiannual interest payments.
| Semiannual Period-End | Unamortized Premium | Carrying Value | ||||||
| (0) | 12/31/2016 | $ | 8,011 | $ | 103,011 | |||
| (1) | 6/30/2017 | 7,210 | 102,210 | |||||
| (2) | 12/31/2017 | 6,409 | 101,409 | |||||
Use the above straight-line bond amortization table and prepare journal entries for the following.
- (a) The issuance of bonds on December 31, 2016.
- (b) The first interest payment on June 30, 2017.
- (c) The second interest payment on December 31, 2017.
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Comparative International Accounting
Authors: Christopher Nobes, Robert B Parker
12th Edition
0273763792, 978-0273763796
