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Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interest payments.   Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $ 6,733 $ 93,267 (1) June 30, first payment 5,891 94,109 (2) December 31, second payment 5,049 94,951 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.

Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interest payments.   Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $ 6,733 $ 93,267 (1) June 30, first payment 5,891 94,109 (2) December 31, second payment 5,049 94,951 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interest payments.

  Semiannual Period-End Unamortized Discount Carrying Value
(0) January 1, issuance $ 6,733 $ 93,267
(1) June 30, first payment 5,891 94,109
(2) December 31, second payment 5,049 94,951

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.

 
  • 1
    Record the issuance of the bonds on January 1.
     
  • 2
    Record the first interest payment on June 30.
     
  • 3
    Record the second interest payment on December 31.
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