Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $95,000 and semiannual interest payments. Unamortized Discount $ 6,633 5,804 4,975 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. Carrying Value $ 88,367 89, 196 90,025 X Answer is not complete.

Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $95,000 and semiannual interest payments. Unamortized Discount $ 6,633 5,804 4,975 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. Carrying Value $ 88,367 89, 196 90,025 X Answer is not complete.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization
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