Response to the following problem:
Matchbox Company issues 6%, four-year bonds, on December 31, 2011, with a par value of $100,000 and semiannual interest payments.
Use the following straight-line bond amortization table and prepare journal entries to record
(a) the issuance of bonds on December 31, 2011;
(b) the first interest payment on June 30, 2012; and
(c) the second interest payment on December 31, 2012.
Semiannual Period-End Unamortized Discount Carrying Value
(0) 12/31/2011 . . . . . . . . . . . . . . . . . $6,733 $93,267
(1) 6/30/2012 . . . . . . . . . . . . . . . . . 5,891 94,109
(2) 12/31/2012 . . . . . . . . . . . . . . . . . 5,049 94,951