Paulson Company issues 7%, four-year bonds, on December 31, 2015. with a par val
ID: 2470301 • Letter: P
Question
Paulson Company issues 7%, four-year bonds, on December 31, 2015. with a par value of $ 104,000 and semiannual interest payments Use the above straight-line bond amortization table and prepare journal entries for the following The issuance of bonds on December 31.2015 The first interest payment on June 30, 2016 The repayment of the bond December 31. 2019. Woodwick Company issues 7%, five-year bonds, on December 31, 2014, with a par value of $99,000 semiannual interest payments. Use the above straight-line bond amortization table and prepare journal entries for the following. The issuance of bonds on December 31, 2014. The first interest payment on June 30, 2015.Explanation / Answer
Paulson Company
Date
Particulars
Dr.(Amt in $)
Cr. (Amt in $)
Issuance of Bond
31.12.2015
Cash
97187
Discount on bond payable
6813
Bond payable
104000
First Interest payment
30.06.2016
Bond interest expenses
4116.91
Cash
3640
Discount on bond payable
476.91
Repayment of bond
31.12.2019
Band payable
104000
Cash
104000
Woodwick Company
Date
Particulars
Dr. (Amt in $)
Cr. (Amt in $)
Issuance of Bond
31.12.2015
Cash
107091
Premium on bond payable
8091
Bond payable
99000
First Interest payment
30.06.2015
Bond Interest Expenses
2898.63
Premium on bond payable
566.37
Cash
3465
Paulson Company
Date
Particulars
Dr.(Amt in $)
Cr. (Amt in $)
Issuance of Bond
31.12.2015
Cash
97187
Discount on bond payable
6813
Bond payable
104000
First Interest payment
30.06.2016
Bond interest expenses
4116.91
Cash
3640
Discount on bond payable
476.91
Repayment of bond
31.12.2019
Band payable
104000
Cash
104000
Woodwick Company
Date
Particulars
Dr. (Amt in $)
Cr. (Amt in $)
Issuance of Bond
31.12.2015
Cash
107091
Premium on bond payable
8091
Bond payable
99000
First Interest payment
30.06.2015
Bond Interest Expenses
2898.63
Premium on bond payable
566.37
Cash
3465