Duval Co. issues four- year bonds with a $ 100,000 par value on June 1, 2013, at a price of $ 95,948. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31. 1. Prepare an amortization table like the one in Exhibit 14.7 for these bonds. Use the straight-line method of interest amortization.
2. Prepare journal entries to record the first two interest payments and to accrue interest as of December 31,2013.