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.

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Unamortized Carrying Semiannual Period-End Discoun Valuet $3.546 2.659 1.772 885 $96,454 97,341 98,228 99,115 100,000 (0 2/3/2013.. (I) 6/30/2014. The two columns always sum to par value for a discount bond. Total bond discount (of $3,546) less accumulated periodic amotization $887 per semiannual interest period). Bond par vaue (of $100,000) less unamortized discount. Adjusted for rounding.