Dolve problem using straight-line bond amortization table

Reference no: EM131779740

Question: Dobbs Company issues 5%, two-year bonds, on December 31, 2017, with a par value of $200,000 and semiannual interest payments.

Semiannual Period-End		Unamortized Discount		Carrying Value
(0)	12/31/2017	$	12,000	$	188,000
(1)	6/30/2018		9,000		191,000
(2)	12/31/2018		6,000		194,000
(3)	6/30/2019		3,000		197,000
(4)	12/31/2019		0		200,000

Use the above straight-line bond amortization table and prepare journal entries for the following.

Required: (a) The issuance of bonds on December 31, 2017.

(b) The first through fourth interest payments on each June 30 and December 31.

Reference no: EM131779740

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