Exercise 10-5 Straight-Line: Recording bond issuance and discount amortization LO P1, P2

Dobbs Company issues 8%, two-year bonds, on December 31, 2017, with a par value of $92,000 and semiannual interest payments.

Semiannual Period-End			Unamortized Discount			Carrying Value
(0)	12/31/2017		$	5,840		$	86,160
(1)	6/30/2018			4,380			87,620
(2)	12/31/2018			2,920			89,080
(3)	6/30/2019			1,460			90,540
(4)	12/31/2019			0			92,000

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.

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 View general journal Clear entry Journal entry worksheet 2 4 Record the interest payment and amortization on December 31, 2019 Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2019 View general journal Record entry Clear entry Journal entry worksheet 2 3 4 Record the interest payment and amortization on December 31, 2018. Note: Enter debits before credits. Debit Date General Journal Credit Dec 31, 2018 View general journal Record entry Clear entry 2 3 4 Record the interest payment and amortization on June 30, 2018. Note: Enter debits before credits General Journal Debit Credit Date Jun 30, 2018 View general journal Record entry Clear entry Journal entry worksheet 1 Record the issue of bonds with a par value of $92,000 cash on December 31, 2017 Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2017 Clear entry View general journal Record entry