Prepare journal entries for the issuance of bond on december

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Problem

Matchbox Company issues 6%, four-year bonds, on December 31, 2011, with a par value of $100,000 and semiannual interest payments.


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

Use the above straight-line bond amortization table and prepare journal entries for the following.

(a) The issuance of bonds on December 31, 2011. (Omit the "tiny_mce_markerquot; sign in your response.)

(b) The first interest payment on June 30, 2012. (Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM131819851

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