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Use the straight line method of interest amortization

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Reference no: EM13901177

Duval Co. issues four year bonds with a $ 100,000 par value on June 1, 2013, at a price of $ 95,948. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31. 
1. Prepare an amortization table like the one in Exhibit 14.7 for these bonds. Use the straight line method of interest amortization. 

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2. Prepare journal entries to record the first two interest payments and to accrue interest as of December 31,2013.

Reference no: EM13901177

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