Question

Chapter 10 Homework Saved Dobbs Company issues 6%, two-year bonds, on December 31, 2018, with a par value of $94,000 and semiannual interest payments. Semiannual Period - End (0) 12/31/2018 (1) 6/30/2019 (2) 12/31/2019 6/30/2020 12/31/2020 Unamortized Discount $5,880 4,410 2,940 1,470 points Carrying Value $88,120 89,590 91,060 92,530 94,000 (3) eBook Use the above straight-line bond amortization table and prepare journal entries for the following. e Hint Required: (a) The issuance of bonds on December 31, 2018. (b) The first through fourth interest payments on each June 30 and December 31. (c) The maturity of the bonds on December 31, 2020. Print Complete this question by entering your answers in the tabs below. References Required A Required B Required The issuance of bonds on December 31, 2018. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $94,000 on December 31, 2018. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2018 Record entry Clear entry View general journal Required A Required B >

Answer 1

Dec, 31st 2018.

Cash account......................................Debit $88,120

Discount on bonds payable account....Debit $5,880

To Bonds Payable account................Credit $94,000

The first through fourth Interest payments on each June 30 and December 31st

June 30, 2019

Bond Interest expense account...................Debit $2,820

Discount on bonds payable account...........Credit $1,470

To Cash account.......................................Credit $ 1,350

December 31, 2019

Bond Interest expense account...................Debit $2,820

Discount on bonds payable account...........Credit $1,470

To Cash account.......................................Credit $ 1,350

June 30, 2020

Bond Interest expense account...................Debit $2,820

Discount on bonds payable account...........Credit $1,470

To Cash account.......................................Credit $ 1,350

December 31, 2020

Bond Interest expense account...................Debit $2,820

Discount on bonds payable account...........Credit $1,470

To Cash account.......................................Credit $ 1,350

C) Maturity of bond

Bonds payable account......Debit $94,000

To cash account................Credit  $94,000