Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $95,000 and semiannual interest payments. Unamortized Discount $ 6,633 5,804 4,975 Semiannual Period-End (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment 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. Carrying Value $ 88,367 89, 196 90,025 X Answer is not complete.
Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $95,000 and semiannual interest payments. Unamortized Discount $ 6,633 5,804 4,975 Semiannual Period-End (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment 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. Carrying Value $ 88,367 89, 196 90,025 X Answer is not complete.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $95,000 and semiannual interest
payments.
Semiannual Period-End
(0) January 1, issuance
June 30, first payment
Carrying Value
$ 88,367
89, 196
90,025
(1)
(2) December 31, second payment
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.
No
1
2
3
Date
January 01
June 30
December 31
Bond interest expense
Unamortized Discount
$6,633
5,804
4,975
Bond interest expense
Answer is not complete.
General Journal
Discount on bonds payable
Cash
Discount on bonds payable
Cash
Cash
Discount on bonds payable
Bonds payable
×›×
X
Debit
4,969 X
4,969
96,207 X
6,793 X
Credit
849 X
4,120 X
849 X
4,120 X
103,000
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