Jobbs 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;
(c) the second interest payment on December 31, 2011.
|
Semiannual Period End |
Unamortized Premium |
Carrying Value |
|
|
(0) |
12/31/2010 |
$8,111 |
$108,111 |
|
(1) |
6/30/2011 |
7,300 |
107,300 |
|
(2) |
12/31/2011 |
6,489 |
106,489 |