Bellvue Company issues 10%, five year bonds, on December 31, 2010, with a par value of $100,000 and semiannual interest payments. Use the following straight line bond amortization table and prepare journal entries to record (a) the issuance of bonds on December 31, 2010; (b) the first interest payment on June 30, 2011; and (c) the second interest payment on December 31, 2011.
|
Semiannual Period End |
Unamortized Discount |
Carrying Value |
|
|
(0) |
12/31/2010 |
$7,360 |
$92,640 |
|
(1) |
6/30/2011 |
6,624 |
93,376 |
|
(2) |
12/31/2011 |
5,888 |
94,112 |