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Prepare journal entries to record the maturity of the bond

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Question: 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

Reference no: EM131534751

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