Woodwick company issues 10% five year bonds on Dec 31 2012, 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, 2012; b) the first interest payment on June 30, 2013; and c) the second interest payment n Dec 31, 2013.
| SEMIANNUAL PERIOD END |
UNAMORTIZED PREMIUM |
CARRYING VALUE
|
| (0) 12/31/2012 |
16,222 |
216,222
|
| (1) 6/30/2013 |
14,600 |
214,600
|
| (2) 12/31/2013 |
12,978 |
212,978 |