Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 andsemiannual interest payments. Use the following bond amortization table and prepare journal entries torecord (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the secondinterest payment on December 31.Semiannual Period-End Unamortized Discount Carrying Value(0) January 1, issuance . $7,360 $92,640(1) June 30, first payment . . . . . . . . . . . . 6,624 93,376(2) December 31, second payment 5,888 94,112
Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 andsemiannual interest payments. Use the following bond amortization table and prepare journal entries torecord (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the secondinterest payment on December 31.Semiannual Period-End Unamortized Discount Carrying Value(0) January 1, issuance . $7,360 $92,640(1) June 30, first payment . . . . . . . . . . . . 6,624 93,376(2) December 31, second payment 5,888 94,112
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 and
semiannual interest payments. Use the following bond amortization table and prepare
record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second
interest payment on December 31.
Semiannual Period-End Unamortized Discount Carrying Value
(0) January 1, issuance . $7,360 $92,640
(1) June 30, first payment . . . . . . . . . . . . 6,624 93,376
(2) December 31, second payment 5,888 94,112
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