Question

Woodwick Company issues 10%, five-year bonds, on December 31, 2017, with a par value of $95,000 and semiannual interest payments Carrying Value $103,011 Semiannual Period-End Unamortized Premium 12/31/2017 6/30/2018 12/31/2018 $8,011 (0) (1) (2) 7,210 6,409 102,210 101,409 Use the above straight-line bond amortization table and prepare journal entries for the following (a) The issuance of bonds on December 31, 2017. (b) The first interest payment on June 30, 2018. (c) The second interest payment on December 31, 2018 View transaction list Journal entry worksheet 1 2 Record the issue of bonds with a par value of $95,000 on December 31, 2017 Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2017 Record entry Clear entry View general journal

Answer 1

Account Title Date Debit Credit Sr.No Dec 31, 2017 Cash $1,03,011 Premium on Bond Payable Bond Payable (To record issuance of bond) $8,011 $95,000 June 30, 2018 Interest Expense $3,949 b [$8011 - $7210] $4,750 [$95000 x 10%)/ 21 Premium on Bond Payable Cash (To record interest payment on bond) $801 Dec 31, 2018 Interest Expense $3,949 C Premium on Bond Payable [$7210 - $6409] $4,750 [$95000 x 10 %)/ 2] $801 Cash (To record interest payment on bond)