Chapter 14- Homework Help Save & Exit Submit Check my work 5 Exercise 14-6 Strai

Question

Chapter 14- Homework Help Save & Exit Submit Check my work 5 Exercise 14-6 Straight-Line: Recording bond issuance and premium amortization LO P1, P3 Woodwick Company issues 10%, five-year bonds, on December 31, 2016,with a par vaie ors 95,000 and semiannual interest payments 8.5 points Semiannual Period-End Unanortized Premium Carrying Value (e) 12/31/2016 (1) 6/3e/2817 (2) 12/31/2817 $8,011 7,21e 6,489 $103,811 102,210 101,489 eBook Use the above straight-line bond amortization table and prepare journal entries for the following Prant (a) The issuance of bonds on December 31. 2016. (b) The first Interest payment on June 30, 2017 (C) The second interest payment on December 31, 2017

Explanation / Answer

No. Date Account Titles Debit Credit (a) Dec. 31, 2016 Cash $103,011   Premium on bonds payable $8,011   Bonds payable $95,000 (b) June 30, 2017 Bond interest expense ($4,750 - $801) $3,949 Premium on bonds payable ($8,011 - $7,210) $801 Cash ($95,000 x 10% x 1/2) $4,750 (c) Dec. 31, 2017 Bond interest expense ($4,750 - $801) $3,949 Premium on bonds payable ($7,210 - $6,409) $801 Cash ($95,000 x 10% x1/2) $4,750

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