Problem
Matchbox Company issues 6%, four-year bonds, on December 31, 2011, with a par value of $100,000 and semiannual interest payments.
|
Semiannual Period-End
|
Unamortized Discount
|
Carrying Value
|
|
(0)
|
12/31/2011
|
6,733
|
$ 93,267
|
|
(1)
|
6/30/2012
|
5,891
|
94,109
|
|
(2)
|
12/31/2012
|
5,049
|
94,951
|
Use the above straight-line bond amortization table and prepare journal entries for the following.
(a) The issuance of bonds on December 31, 2011. (Omit the "tiny_mce_markerquot; sign in your response.)
(b) The first interest payment on June 30, 2012. (Omit the "tiny_mce_markerquot; sign in your response.)