Exercise $10-5($Algo$)$ Straight$-$Line: Recording bond issuance and discount amortization LO P$2$

$4\mathrm{.}54$

points

eBook

Hint

Print

References

Paulson Company issues $7\%,$ four$-$year bonds, on January $1$ of this year, with a par value of $$96,000$ and semiannual interest payments.

$$ Semiannual Period$-$End

$(0)$ January $1,$ issuance

$(1)$ June $30,$ first payment

$(2)$ December $31,$ second payment

Use the above straight$-$line bond amortization table and prepare journal entries for the following.

$($a$)$ The issuance of bonds on January $1.$

$($b$)$ The first interest payment on June $30.$

$($c$)$ The second interest payment on December $31.$