Question

Paulson Company issues 7%, four-year bonds, on December 31, 2017, with a par value of $91,000 and semiannual interest payments Semiannual Period-End (0) 12/31/2017 (1) 6/30/2018 (2) 12/31/2018 Unamortized Discount 56,553 5,734 4,915 Carrying Value $84,447 85, 266 86.085 points Skipped Use the above straight-line bond amortization table and prepare journal entries for the following. eBock (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 3 References Record the interest payment and amortization on June 30, 2018 Note: Enter debits before credits Debit Credit General Journal Bond inverest expense Jun 30, 2018 Discount of on bonds paya Prev 1 of 5 Next >

Answer 1

Ansherr Page No 0 a) The issuance of bonds on December 31, 2017. The bords are issued at the price less than its par value. It term as bonds issued at discount Date Account title Debit C Dec 31 2014 Cash 84,447 Discounts on bonds payably 6,5531 Budę payable To record the sold bonds bt discount. 91000 b) The first intrest payment on June 30, 2018 1 The total amount of intrest payable on .. bond issuana during a ginien pcariod of time ia known as Bond Interest Expense.

Pageno Date Account title Debit Cad) Credit June 20 Bonds intreat expense | 4004 2018 Discounts on bonded Payable 819 C$6.553 -5,434) cash($91,000x74xla) 3185 To record the paid semiannual intrest and record amortization Paulson Company issued 7four year bondson December 31, 2017. With a par value of $91,000 and Semi annual intrest payment Account title - Debit Coll conditis) Bonds Intrest rate Dec 31th Discounts on "Bond Payable 819 2018 C$5,34-$4,915) cash ($91000 x 74. * Yal) 3185 Date 4004 1. To record the paid şemiannual intrest and record amortization,