Duval Co. issues four-year bonds with a $100,000 par value on January 1, 2021, at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31.

1. Prepare a straight-line amortization table like Exhibit 14.7 for these bonds.
2. Prepare journal entries to record the first two interest payments.
3. Prepare the journal entry for maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded).

Exhibit 14.7

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EXHIBIT 14.7 Semiannual Unamortized Carrying Period-End Discount Value Straight-Line Amortization of Bond Discount (0) 12/31/2021 .... $3,600 $ 96,400 (1) 6/30/2022 .... 2,700 97,300 (2) 12/31/2022.... 1,800 98,200 (3) 6/30/2023 .... 900 99,100 (4) 12/31/2023.... 100,000 The columns always sum to par value for discount bonds.