Jobbs company issues a 5%, two year bonds, on Dec 31, 2010, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to record a) the insurance of bonds on Dec 31, 2010; b) the first through fourth interest payments on each June 30 and Dec 31; and c) the maturity of the bond on Dec 31, 2012.
|
SEMIANNUAL PERIOD-END
|
UNAMORTIZED DISCOUNT |
CARRYING VALUE |
| (0) 12/31/2010 |
12,000 |
188,000 |
| (1) 6/30/2011 |
9,000 |
191,000 |
| (2) 12/31/2011 |
6,000 |
194,000 |
| (3) 6/30/2012 |
3,000 |
197,000 |
| (4) 12/31/2012 |
0 |
200,000 |