Question - Anna Company issues 10%, 5-year bonds, on December 31, 2008, with a par value of $110,000 and semiannual interest payments.
|
Semiannual Period-End
|
Unamortized Premium
|
Carrying value
|
|
(0)
|
12/31/2008
|
$ 7,737
|
$ 117,737
|
|
(1)
|
6/30/2009
|
6,953
|
116,953
|
|
(2)
|
12/31/2009
|
6,169
|
116,169
|
Required:
(a) Use the above straight-line bond amortization table and prepare journal entries to record the issuance of bonds on December 31, 2008.
(b) Use the above straight-line bond amortization table and prepare journal entries to record the first interest payment on June 30, 2009.
(c) Use the above straight-line bond amortization table and prepare journal entries to record the second interest payment on December 31, 2009.