Matchbox Company issues 6%, four year bonds, on December 31, 2011, 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, 2011;
(b) the first interest payment on June 30, 2012;
(c) the second interest payment on December 31, 2012.
|
Semiannual Period End |
Unamortized Premium |
Carrying Value |
|
|
(0) |
12/31/2010 |
$6,733 |
$93,267 |
|
(1) |
6/30/2011 |
5,891 |
94,109 |
|
(2) |
12/31/2011 |
5,049 |
94,951 |