Exercise $10-7($Algo$)$ Straight$-$Line: Amortization table and bond interest expense LO P$2$

Duval Company issues four$-$year bonds with a $$108,000$ par value on January $1,2021,$ at a price of $$103,920.$ The annual contract rate is $6\%,$ and interest is paid semiannually on June $30$ and December $31.$

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline Semiannual Period$-$End & Unamortized Discount & Carrying Value $\backslash \backslash$

$\backslash$hline $1/01/2021$ & $\backslash$$ $4,080$ & $\backslash$$ $103\mathrm{.}920\backslash \backslash$

$\backslash$hline $6/30/2021$ & $3\mathrm{.}570$ & $104\mathrm{.}430\backslash \backslash$

$\backslash$hline $12/31/2021$ & $3,000$ & $104\mathrm{.}940\backslash \backslash$

$\backslash$hline $6/30/2022$ & $2,650$ & $105,450\backslash \backslash$

$\backslash$hline $12/31/2022$ & $2,040$ & $105,060\backslash \backslash$

$\backslash$hline $6/30/2023$ & $1,530$ & $106,470\backslash \backslash$

$\backslash$hline $12/31/2023$ & $1\mathrm{.}020$ & $106\mathrm{.}980\backslash \backslash$

$\backslash$hline $0/30/2024$ & $510$ & $107,490\backslash \backslash$

$\backslash$hline $12/31/2024$ & $0$ & $108,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}2.$ Prepare journal entrles to record the first two Interest payments.

Journal entry worksheet

$1$

$2$

Record the interest payment and discount amortization on June $30,2021.$

Note: Enter debits before credits.