Prepare journal entries to record second interest payment

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Question: Matchbox Company issues 6%, four-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 interest payment on June 30, 2012; and

(c) the second interest payment on December 31, 2012.

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

Reference no: EM131534756

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