Oneil Company issues 5%, two-year bonds, on December 31, 2011, with a par value of $100,000 and…

 
   

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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