Dobbs Company issues 9%, two-year bonds, on December 31, 2021, with a par value of $91,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value (0) 12/31/2021 $ 5,820 $ 85,180 (1) 6/30/2022 4,365 86,635 (2) 12/31/2022 2,910 88,090 (3) 6/30/2023 1,455 89,545 (4) 12/31/2023 0 91,000 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on December 31, 2021. (b) The first through fourth interest payments on each June 30 and December 31. (c) Record the maturity of the bonds on December 31, 2023.
Dobbs Company issues 9%, two-year bonds, on December 31, 2021, with a par value of $91,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value (0) 12/31/2021 $ 5,820 $ 85,180 (1) 6/30/2022 4,365 86,635 (2) 12/31/2022 2,910 88,090 (3) 6/30/2023 1,455 89,545 (4) 12/31/2023 0 91,000 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on December 31, 2021. (b) The first through fourth interest payments on each June 30 and December 31. (c) Record the maturity of the bonds on December 31, 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dobbs Company issues 9%, two-year bonds, on December 31, 2021, with a par value of $91,000 and semiannual interest payments.
| Semiannual Period-End | Unamortized Discount | Carrying Value | |
|---|---|---|---|
| (0) | 12/31/2021 | $ 5,820 | $ 85,180 |
| (1) | 6/30/2022 | 4,365 | 86,635 |
| (2) | 12/31/2022 | 2,910 | 88,090 |
| (3) | 6/30/2023 | 1,455 | 89,545 |
| (4) | 12/31/2023 | 0 | 91,000 |
Use the above straight-line bond amortization table and prepare
(a) The issuance of bonds on December 31, 2021.
(b) The first through fourth interest payments on each June 30 and December 31.
(c) Record the maturity of the bonds on December 31, 2023.
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