Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par...
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Accounting
Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $110,000 and semiannual interest payments.
Semiannual Period-End
Unamortized Premium
Carrying Value
(0)
January 1, issuance
$ 8,311
$ 118,311
(1)
June 30, first payment
7,480
117,480
(2)
December 31, second payment
6,649
116,649
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.
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