Exercise 10-7 Straight-Line: Amortization table and bond interest expense LO P2

[The following information applies to the questions displayed below.]

Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019, at a price of $113,864. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31.

Exercise 10-7 Part 1

straight-line amortization table for these bonds

Semiannual

Period-End

1/01/2019

6/30/2019

12/31/2019

6/30/2020

12/31/2020

6/30/2021

12/31/2021

6/30/2022

12/31/2022

Unamortized Discount

Carrying Value

journal entries to record the first two interest payments.

• Record the interest payment and discount amortization on June 30, 2019.
• Record the interest payment and discount amortization on December 31, 2019.

the journal entry for maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).

• Record the entry for maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).