Problem
Dobbs Company issues 8%, two-year bonds, on December 31, 2015, with a par value of $97,000 and semiannual interest payments.
|
Semiannual Period-End
|
Unamortized Discount
|
Carrying Value
|
|
(0)
|
12/31/2015
|
5,940
|
91,060
|
|
(1)
|
6/30/2016
|
4,455
|
92,545
|
|
(2)
|
12/31/2016
|
2,970
|
94,030
|
|
(3)
|
6/30/2017
|
1,485
|
95,515
|
|
(4)
|
12/31/2017
|
0
|
97,000
|
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.