Response to the following problem:
Oneil Company issues 5%, two-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 through fourth interest payments on each June 30 and December 31; and
(c) the maturity of the bond on December 31, 2013.
Semiannual Period-End Unamortized Discount Carrying Value
(0) 12/31/2011 . . . . . . . . . . . . . . . . . $6,000 $ 94,000
(1) 6/30/2012 . . . . . . . . . . . . . . . . . 4,500 95,500
(2) 12/31/2012 . . . . . . . . . . . . . . . . . 3,000 97,000
(3) 6/30/2013 . . . . . . . . . . . . . . . . . 1,500 98,500
(4) 12/31/2013 . . . . . . . . . . . . . . . . . 0 100,000