Exercise 10-6 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2 Dobbs Company issues 6%, two-year bonds, on December 31, 2021, with a par value of $94,000 and semiannual interest payments. (e) (1) (2) (3) (4) Semiannual Period-End 12/31/2021 6/30/2022 12/31/2022 6/30/2023 Unamortized Discount $ 5,880 4,410 2,940 1,470 Carrying Value $ 88,120 89,590 91,060 92,530 94,000 12/31/2023 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C The first through fourth interest payments on each June 30 and December 31. View transaction list View journal entry worksheet No Date General Journal 1 June 30, 2022 Bond interest expense Discount on bonds payable Cash 2 December 31, 2022 Bond interest expense 3 June 30, 2023 Discount on bonds payable Cash Bond interest expense Discount on bonds payable Cash December 31, 4 2023 Bond interest expense Discount on bonds payable Cash Debit Credit 2,820 2,820 2,820 2,820 < Required A Required C >
Exercise 10-6 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2 Dobbs Company issues 6%, two-year bonds, on December 31, 2021, with a par value of $94,000 and semiannual interest payments. (e) (1) (2) (3) (4) Semiannual Period-End 12/31/2021 6/30/2022 12/31/2022 6/30/2023 Unamortized Discount $ 5,880 4,410 2,940 1,470 Carrying Value $ 88,120 89,590 91,060 92,530 94,000 12/31/2023 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C The first through fourth interest payments on each June 30 and December 31. View transaction list View journal entry worksheet No Date General Journal 1 June 30, 2022 Bond interest expense Discount on bonds payable Cash 2 December 31, 2022 Bond interest expense 3 June 30, 2023 Discount on bonds payable Cash Bond interest expense Discount on bonds payable Cash December 31, 4 2023 Bond interest expense Discount on bonds payable Cash Debit Credit 2,820 2,820 2,820 2,820 < Required A Required C >
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 7P: Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued...
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Transcribed Image Text:Exercise 10-6 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2
Dobbs Company issues 6%, two-year bonds, on December 31, 2021, with a par value of $94,000 and semiannual interest payments.
(e)
(1)
(2)
(3)
(4)
Semiannual Period-End
12/31/2021
6/30/2022
12/31/2022
6/30/2023
Unamortized Discount
$ 5,880
4,410
2,940
1,470
Carrying Value
$ 88,120
89,590
91,060
92,530
94,000
12/31/2023
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.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
The first through fourth interest payments on each June 30 and December 31.
View transaction list
View journal entry worksheet
No
Date
General Journal
1
June 30, 2022
Bond interest expense
Discount on bonds payable
Cash
2
December 31,
2022
Bond interest expense
3
June 30, 2023
Discount on bonds payable
Cash
Bond interest expense
Discount on bonds payable
Cash
December 31,
4
2023
Bond interest expense
Discount on bonds payable
Cash
Debit
Credit
2,820
2,820
2,820
2,820
< Required A
Required C >
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