Prepare journal entries to record second interest payment

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Question - St. Charles Company issues 6%, 4-year bonds, on December 31, 2009, with a par value of $110,000 and semiannual interest payments.

Semiannual Period-End

Unamortized Discount

Carrying value

(0)

12/31/2009

$ 8,500

$ 101,500

(1)

06/30/2010

7,500

102,500

(2)

12/31/2010

6,500

103,500

Required:

(a) Use the above straight-line bond amortization table and prepare journal entries to record the issuance of bonds on December 31, 2009.

(b) Use the above straight-line bond amortization table and prepare journal entries to record the first interest payment on June 30, 2010.

(c) Use the above straight-line bond amortization table and prepare journal entries to record the second interest payment on December 31, 2010.

Reference no: EM131816254

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