Question - St. Charles Company issues 6%, 4-year bonds, on December 31, 2009, with a par value of $110,000 and semiannual interest payments.
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Semiannual Period-End
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Unamortized Discount
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Carrying value
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|
(0)
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12/31/2009
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$ 8,500
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$ 101,500
|
|
(1)
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06/30/2010
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7,500
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102,500
|
|
(2)
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12/31/2010
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6,500
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103,500
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Required:
(a) Use the above straight-line bond amortization table and prepare journal entries to record the issuance of bonds on December 31, 2009.
(b) Use the above straight-line bond amortization table and prepare journal entries to record the first interest payment on June 30, 2010.
(c) Use the above straight-line bond amortization table and prepare journal entries to record the second interest payment on December 31, 2010.