Question

Dobbs Company issues 5%, two-year bonds, on December 31, 2019, with a par value of $105,000 and semiannual interest payments. Unamortized Discount Semiannual Period-End Carrying Value (0) 12/31/2019 (1) (2) 12/31/2020 (3) (4) 12/31/2021 $98,900 100,425 101,950 103,475 105,000 $6,100 4,575 3,050 1,525 6/30/2020 6/30/2021 0 Use the above straight-line bond amortization table and prepare journal entries for the following. 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. Complete this question by entering your answers in the tabs below. Required Required Required В А C The issuance of bonds on December 31, 2019. View transaction list Journal entry worksheet > Record the issue of bonds with a par value of $105,000 cash on December 31, 2019. Note: Enter debits before credits. General Journal Credit Date Debit Dec 31 2019 Record entry Clear entry View general journal

Answer 1

A
Dec 31,2019	Cash	98900
	Discount on Bonds payable	6100
	Bonds payable		105000
B
June 30,2020	Interest expense	4150
	Discount on Bonds payable		1525	=6100-4575
	Cash		2625	=105000*5%/2
Dec 31,2020	Interest expense	4150
	Discount on Bonds payable		1525	=4575-3050
	Cash		2625
June 30,2021	Interest expense	4150
	Discount on Bonds payable		1525	=3050-1525
	Cash		2625
Dec 31,2021	Interest expense	4150
	Discount on Bonds payable		1525
	Cash		2625
C
Dec 31,2021	Bonds payable	105000
	Cash		105000