Problem

(L.OBJ. 6) Journalizing bond issuance and interest payments [10 min] On January 1, Durk...

(L.OBJ. 6) Journalizing bond issuance and interest payments [10 min]

On January 1, Durkin limited issues 9%, 20-year bonds payable with a maturity value of $70,000. The bonds sell at 97 and pay interest on January 1 and July 1. Durkin amortizes bond discount by the straight-line method.

Requirements

1. Journalize the issuance of the bonds on January 1.

2. Journalize the semiannual interest payment and amortization of bond discount on July 1.

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