Exercise 10-5 Straight-Line: Recording bond issuance and discount amortization LO P1, P2 Dobbs Company issues 5%, two-year bonds, on December 31, 2017, with a par value of $200,000 and semiannual interest payments Semiannual Period-End (0 12/31/2017 (1) 6/30/2018 (2) 12/31/2018 (3) 6/30/2019 (4) 12/31/2019 Unamortized Discount Carrying Value $188,000 191,000 194,000 197,000 200,000 $12,000 9,000 6,000 3,000 Use the above straight-line bond amortization table and prepare journal entries for the following Required (a) The issuance of bonds on December 31, 2017 (b) The first through fourth interest payments on each June 30 and December 31 (c) Record the maturity of the bonds on December 31, 2019 Required A Required B Required C The issuance of bonds on December 31, 2017. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $200,000 cash on December 31, 2017. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2017 Journal entry worksheet 2 4 Record the interest payment and amortization on June 30, 2018. Note: Enter debits before credits. Date Credit General Journal Debit Jun 30, 2018 Record entry Clear entry View general journal Journal entry worksheet 3 4 Record the interest payment and amortization on December 31, 2018. Note: Enter debits before credits General Journal Debit Date Credit Dec 31, 2018 View transaction list Journal entry worksheet 4 Record the interest payment and amortization on June 30, 2019. Note: Enter debits before credits. Date General Journal Debit Credit Jun 30, 2019 View transaction list Journal entry worksheet 4 Record the interest payment and amortization on December 31, 2019. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2019 Record the maturity of the bonds on December 31, 2019. View transaction list Journal entry worksheet Record the payment on maturity on December 31, 2019. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2019 Record entry Clear entry View general journal