bookmarks here on the bookmarks bar. Import bookmarks now. Dobbs Company issues

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bookmarks here on the bookmarks bar. Import bookmarks now. Dobbs Company issues 996, two-year bonds, on December 31, 2017, with a par value of $910O iannual per (0)12/31/2017 (1 6/30/2018 (2) 12/31/2018 (3)6/30/2019 (4) 12/31/2019 $5,820 $85,180 86,635 88,090 89,545 91,000 1,455 Use the above straight-line bond amortization table and prepare journal entries for the 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 this

Explanation / Answer

Journal entry :

Date Accounts & Explanation debit credit 12/31/17 Cash 85180 Discount on bonds payable 5820 Bonds payable 91000 (TO record bond issue) 6/30/2018 Interest expense 9645 Discount on bonds payable 1455 Cash 8190 (To record interest paid) 12/31/2018 Interest expense 9645   Discount on bonds payable 1455 Cash 8190 (To record interest) 6/30/2019 Interest expense 9645   Discount on bonds payable 1455    Cash 8190 (To record interest) 12/31/2019 Interest expense 9645   Discount on bonds payable 1455    Cash 8190 (To record interest) 12/31/2019 Bonds payable 91000    Cash 91000 (To record maturity of bonds)

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