Paulson Company issues 8%, four-year bonds, on January 1 of this year, with a par value of $103,000 and semiannual interest payments. 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. Unamortized Discount $ 6,793 5,944 5,095 Carrying Value $ 96,207 97,056 97,905
Paulson Company issues 8%, four-year bonds, on January 1 of this year, with a par value of $103,000 and semiannual interest payments. 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. Unamortized Discount $ 6,793 5,944 5,095 Carrying Value $ 96,207 97,056 97,905
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 96PSA
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![Exercise 14-5 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2
Paulson Company issues 8%, four-year bonds, on January 1 of this year, with a par value of $103,000 and semiannual interest
payments.
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.
Unamortized Discount
$ 6,793
(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
$ 96,207
97,056
97,905
5,944
5,095](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f0687f5-60ba-4c2c-ac3d-204d07b8b8bb%2Ffa25f534-8baf-473a-9ff9-cd44ee864a42%2Fgorrxsg_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 14-5 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2
Paulson Company issues 8%, four-year bonds, on January 1 of this year, with a par value of $103,000 and semiannual interest
payments.
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.
Unamortized Discount
$ 6,793
(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
$ 96,207
97,056
97,905
5,944
5,095
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