Dobbs Company issues 5%, two-year bonds, on December 31, 2015, with a par value of $95,000 and semiannual interest payments.
| Semiannual Period-End |
Unamortized Discount |
Carrying Value |
|
(0) 12/31/2015
|
$5,900 |
$89,100 |
|
(1) 6/30/2016
|
4,425 |
90,575 |
|
(2) 12/31/2016
|
2,950 |
92,050 |
|
(3) 6/30/2017
|
1,475 |
93,525 |
|
(4) 12/31/2017
|
0 |
95,000 |
Use the above straight-line bond amortization table and prepare journal entries for the following.
Required:
(a) The issuance of bonds on December 31, 2015.
(b) The first through fourth interest payments on each June 30 and December 31.