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Exercise 14-6 Straight-Line: Recording bond issuance and premium amortization LO P1, P3
Woodwick Company issues 6%, five-year bonds, on December 31, 2016, with a par value of $98,000 and semiannual interest payments.
| Semiannual Period-End | Unamortized Premium | Carrying Value |
| (0) | 12/31/2016 | | $ | 8,071 | | $ | 106,071 | |
| (1) | 6/30/2017 | | | 7,264 | | | 105,264 | |
| (2) | 12/31/2017 | | | 6,457 | | | 104,457 | |
| |
Use the above straight-line bond amortization table and prepare journal entries for the following.
- (a) The issuance of bonds on December 31, 2016.
- (b) The first interest payment on June 30, 2017.
- (c) The second interest payment on December 31, 2017.
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