QS 14-10 (Algo) Recording bond issuance and discount amortization LO P2 Snap Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $180,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount (0) January 1, issuance (1) June 30, first payment 174,060 (2) December 31, second payment 174,720 Use the above bond amortization table and prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. $ 6,600 5,940 Carrying Value $ 173,400 5,280
QS 14-10 (Algo) Recording bond issuance and discount amortization LO P2 Snap Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $180,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount (0) January 1, issuance (1) June 30, first payment 174,060 (2) December 31, second payment 174,720 Use the above bond amortization table and prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. $ 6,600 5,940 Carrying Value $ 173,400 5,280
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:QS 14-10 (Algo) Recording bond issuance and discount amortization LO P2
Snap Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $180,000 and semiannual interest
payments.
Semiannual Period-End
(0) January 1, issuance
(1) June 30, first payment
(2) December 31, second payment
Unamortized Discount
Carrying Value
$ 173,400
$ 6,600
5,940
5,280
Use the above bond amortization table and prepare journal entries to record (a) the issuance of bonds January 1, (b)
the first interest payment on June 30, and (c) the second interest payment on December 31.
174,060
174,720
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