Exercise 14-5 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 $95,000 and semiannual interest payments.

Semiannual Period-End			Unamortized Discount			Carrying Value
(0)	12/31/2017		$	5,900		$	89,100
(1)	6/30/2018			4,425			90,575
(2)	12/31/2018			2,950			92,050
(3)	6/30/2019			1,475			93,525
(4)	12/31/2019			0			95,000

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.