Reference no: EM132345682
Question
Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interest payments.
Semiannual Period-EndUnamortized PremiumCarrying Value(0)January 1, issuance$8,111 $108,111 (1)June 30, first payment 7,300 107,300 (2)December 31, second payment 6,489 106,489
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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