Dobbs Company issues 5%, two-year bonds, on December 31, 2017, with a par value of $200,000 and

Question:

Dobbs Company issues 5%, two-year bonds, on December 31, 2017, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to record (a) the issuance of bonds on December 31, 2017; (b) the first through fourth interest payments on each June 30 and December 31; and (c) the maturity of the bonds on December 31, 2019.

Semiannual Period-End Unamortized Discount Carrying Value

(0) 12/31/2017............................$12,000...................................$188,000

(1) 6/30/2018.................................9,000....................................191,000

(2) 12/31/2018...............................6,000....................................194,000

(3) 6/30/2019.................................3,000....................................197,000

(4) 12/31/2019....................................0....................................200,000

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...