Exercise 10-6 Straight-Line: Recording bond issuance and
discount amortization LO P2
Dobbs Company issues 5%, two-year bonds, on December 31, 2019,
with a par value of $105,000 and semiannual interest
payments.
Semiannual Period-End
Unamortized Discount
Carrying Value
(0)
12/31/2019
$
6,100
$
98,900
(1)
6/30/2020
4,575
100,425
(2)
12/31/2020
3,050
101,950
(3)
6/30/2021
1,525
103,475
(4)
12/31/2021
0
105,000
Use the above straight-line bond amortization table and prepare
journal entries for the following.
Required:
(a) The issuance of bonds on...