Question: Jobbs Company issues 10%, five-year bonds, on December 31, 2010, with a par value of $100,000 and semiannual interest payments. Use the following straight-line bond amortization table and prepare journal entries to record
(a) the issuance of bonds on December 31, 2010;
(b) the first interest payment on June 30, 2011; and
(c) the second interest payment on December 31, 2011.
Semiannual Period-End Unamortized Premium Carrying Value
(0) 12/31/2010 . . . . . . . . . . . . . . . . . $8,111 $108,111
(1) 6/30/2011 . . . . . . . . . . . . . . . . . 7,300 107,300
(2) 12/31/2011 . . . . . . . . . . . . . . . . . 6,489 106,489