Dobbs Company issues 5%, two-year bonds, on December 31, 2016, with a par value

Question

Dobbs Company issues 5%, two-year bonds, on December 31, 2016, with a par value or $100,000 and semiannual interest payments Unamortized Discount Carrying Value Period-End (0)12/31/2016 (1) 6/30/2017 (2)12/31/2017 (3) 6/30/2018 (4)12/31/2018 S 6,000 4.500 3,000 1,500 95.500 97,000 100,000 Use the above straight-line bond amortization table and prepare joumal entries for the folliowing Required: (a) The issuance of bonds on December 31, 2016 View transaction list Journal entry worksheet Record the issue of bonds with a par value of $100,000 cash on December 31, 2016 Note: Enter debits before credits Date General Journal Dec 31, 2016 Record entry Clear entry View general journal

Explanation / Answer

Journal Entry Date Accounts title and explanations Debit $ Credit $ Dec 31 2016 Cash Account Dr. 94000 Discount on Bonds payable Dr. 6,000     Bonds payable 100,000 June 30 2017 Interest expense Dr. 4,000      Cash Account 2,500      Discount on bonds payble 1,500 Dec 31 2017 Interest expense Dr. 4000      Cash Account 2,500      Discount on bonds payble 1,500 June 30 2018 Interest expense Dr. 4000      Cash Account 2,500      Discount on bonds payble 1,500 Dec 31 2018 Interest expense Dr. 4000      Cash Account 2,500      Discount on bonds payble 1,500 Dec 31 2018 Bonds payable Dr. 100,000      Cash account 100,000

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.