Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000 and semiannual interest payment Unamortized Premium $ 7,951 Carrying Value $ 99,951 99, 156 98,361 7,156 6,361 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.
Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000 and semiannual interest payment Unamortized Premium $ 7,951 Carrying Value $ 99,951 99, 156 98,361 7,156 6,361 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vishnu
Transcribed Image Text:Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000 and semiannual interest payments.
Semiannual Period-End
(0) January 1, issuance
(1) June 30, first payment
Carrying Value
$ 99,951
99, 156
98,361
(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
Cash
Unamortized Premium
$ 7,951
7,156
6,361
General Journal
Bonds payable
Premium on bonds payable
Bond interest expense
Premium on bonds payable
Cash
Answer is not complete.
Bond interest expense
Premium on bonds payable
Cash
Debit
99,951
Credit
92,000
7,951
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