Wood wick Company issues 10%, five-year bonds on December 31, 2015, with a par value of $200,000

Question:

Wood wick Company issues 10%, five-year bonds on December 31, 2015, with a of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to record
(a) The issuance of bonds on December 31, 2015;
(b) The first interest payment on June 30, 2016; and
(c) The second interest payment on December 31, 2016.
Semiannual Period-End ____________Unamortized Discount __________Carrying Value
(0) 12/31/2015 . . . . . . . . . . . . . . . . . . . . . . . . $16,222 . . . . . . . . . . . . . . . . . . . $216,222
(1) 6/30/2016 . . . . . . . . . . . . . . . . . . . . . . . . . .14,600 . . . . . . . . . . . . . . . . . . . . 214,600
(2) 12/31/2016 . . . . . . . . . . . . . . . . . . . . . . . . .12,978 . . . . . . . . . . . . . . . . . . . . 212,978
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...