Exercise Algo StraightLine: Recording bond issuance and discount amortization LO P
Paulson Company issues fouryear bonds, on January of this year, with a par value of $ and semiannual interest payments.
Semiannual PeriodEnd Unamortized Discount Carrying Value
January issuance $ $
June first payment
December second payment
Use the above straightline bond amortization table and prepare journal entries for the following.
a The issuance of bonds on January
b The first interest payment on June
c The second interest payment on December
