Problem #1 Paulson Company issues 6%, four-year bonds on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table to prepare journal entries for the following: Semiannual period end January 1, issuance June 30, first payment December 31, second payment (a) The issuance of bonds on January 1. Date Unamortized discount Amortization = $1,683 per period $13,466 11,782 10,098 Date (b) The first interest payment on June 30. General Journal Date General Journal (c) The second interest payment on December 31. General Journal Carrying Value $186,534 188,217 189,900 Debit Debit Debit Credit Credit Credit

Problem #1 Paulson Company issues 6%, four-year bonds on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table to prepare journal entries for the following: Semiannual period end January 1, issuance June 30, first payment December 31, second payment (a) The issuance of bonds on January 1. Date Unamortized discount Amortization = $1,683 per period $13,466 11,782 10,098 Date (b) The first interest payment on June 30. General Journal Date General Journal (c) The second interest payment on December 31. General Journal Carrying Value $186,534 188,217 189,900 Debit Debit Debit Credit Credit Credit

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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