Question
Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $110,000 and semiannual interest payments. Semiannual Period-End Unamortized
Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $110,000 and semiannual interest payments.
| Semiannual Period-End | Unamortized Premium | Carrying Value | |
|---|---|---|---|
| (0) | January 1, issuance | $ 8,311 | $ 118,311 |
| (1) | June 30, first payment | 7,480 | 117,480 |
| (2) | December 31, second payment | 6,649 | 116,649 |
Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31.
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Financial Accounting And Reporting
Authors: Barry Elliott, Jamie Elliott
5th Edition
0273651560, 978-0273651567
