Question

Woodwick Company issues 6%, five-year bonds, on December 31, 2017, with a par value of $102,000 and semia payments. Semiannual Period-End (0) 12/31/2017 (1) 6/30/2018 (2) 12/31/2018 Unamortized Premium $8,151 7,336 6,521 Carrying Value $110,151 109,336 108,521 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 3 Record the issue of bonds with a par value of $102,000 on December 31, 2017.

Answer 1

	Date	Particulars	Amount	Amount
a.)	Dec. 31, 2017	Bank account                                                                                         Dr.	$ 102,000.00
		To 6% Bonds		$ 102,000.00
		(being issue of 6% bonds at par value)
b.)	Jun. 30, 2018	Interest Expense                                                                                 Dr.	$      3,060.00
		To Bank account		$      3,060.00
		(being first interest payment made for 6 months)
C.)	Dec. 31, 2018	Interest Expense                                                                                 Dr.	$      3,060.00
		To Bank account		$      3,060.00
		(being second interest payment made for 6 months)