Question

Chapter 10 Exercise Seved Help Save & Exit Submit Check my work 4 Dobbs Company issues 7%, two-year bonds, on December 31, 2019, with a par value of $102,000 and semiannual interest payments. Carrying Value $ 95,960 97,478 98,980 100,490 102,000 Semiannual Period-End (0) (1) (2) (3) (4) Unanortized Discount $6,040 4,530 3,020 1,510 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 071 points eBook Hint Use the above straight-line bond amortization table and prepare journal entries for the following. Print Required: (a) The issuance of bonds on December 31, 2019. (b) The first through fourth interest payments on each June 30 and December 31. (c) Record the maturity of the bonds on December 31, 2021. References

Answer 1

Issue Entry 1. Record the Bond Issue Date General Journal Debit Credit December 31,2019 Cash 95960 Discount on Bonds Payable 6040 Bonds Payable 102000 Record the Issue of the Bond with Discount Credit Journal entris for interest Payment Record the interest payment and amotization Date General Journal Debit June 30 2020 Interest Expenses 5080 Discount on Bonds Payable Cash Record the interest Expense and amortization of Discount Cash interest 102000*7%*6/12 3570 bond Amortization =6040-4530 1510 1510 3570

Date General Journal Debit Credit Dec 31,2020 Interest Expenses 5080 Discount on Bonds Payable 1510 Cash 3570 Record the interest Expense and amortization of Discount Date General Journal Debit Credit June 30 2021 Interest Expenses 5070 Discount on Bonds Payable 1500 Cash 3570 Record the interest Expense and amortization of Discount Date General Journal Debit Credit Dec 31,2021 Interest Expenses 5070 Discount on Bonds Payable 1500 Cash 3570 Record the interest Expense and amortization of Discount Retire 1. Record the Retire the Bond Date General Journal Debit Credit Dec 31 2011 Bonds Patyable 102000 Cash 102000 Record theREtire the Bond