wood wick company issues 10% five year bonds on December Ch. 10-Homework 6 Woodw

Question

wood wick company issues 10% five year bonds on December Ch. 10-Homework 6 Woodwick Company issues los, fiveyear bonds, on December 31, 206 th a par value of smoo oa d semia alimerest ) 12/31/201 (1) 630/2017 (2) 12/31/201 2.5 7,480 117.40 Use the above straight-ine bond amortization table and prepare journal entries for the following (a) The issuance of bonds on December 31, 2016 b) The first interest payment on June 30, 2017 c) The second interest payment on December 31, 2017 Journal entry worksheet Record the issue of bonds with a par value of $110,000 cash on December 31, 2016- debitas before Debit Credit Dec 31, 2016 Prev or Next 4 5 6 8 2 3

Explanation / Answer

Date General Journal Debit Credit 1) 12/312016 Cash 118,311 Premium on bonds 8,311 Bonds payable 110,000 2) 6/30/2017 interest expene 4669 premium on bonds (8311/10) 831 cash (110,000*5%) 5500 3) 12/31/2017 interest expene 4,669 premium on bonds 831 cash 5,500

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