On January 1, 2009, Clintwood Corporation issued a $50,000, ten-year, 6% bond payable (interest payable semi annually on June 30 and December 31). For the three assumptions below, complete the following schedule assuming the accounting year ends December 31, and straight-line amortization is used:
transaction sales@100 sale @ 96 sale @ 104
assumption 1 auumption 2 assumption 3
a. cash rcvd on issuance
b. 2009 interest expense
c. net bond carrying
value on 12/31/2010
balance sheet
D. Provide the June 30 and December 31, 2009 journal entries to record interest expense and the payment of interest.