Dobbs Company issues 9%, two-year bonds, on December 31, 2015, with a par value of $109,000 and semiannual interest payments

Dobbs Company issues 9%, two-year bonds, on December 31, 2015, with a par value of $109,000 and semiannual interest payments.

Semiannual Period-End			Unamortized Discount			Carrying Value
(0)	12/31/2015		$	6,180		$	102,820
(1)	6/30/2016			4,635			104,365
(2)	12/31/2016			3,090			105,910
(3)	6/30/2017			1,545			107,455
(4)	12/31/2017			0			109,000

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.

(c)	Record the maturity of the bond on December 31, 2017.

Explanation:

(b) 

June 30 2016	Discount on Bonds Payable: $6,180 – $4,635 = $1,545
	Cash = $109,000 × 9% × 1/2 = $4,905
Dec. 31 2016	Discount on Bonds Payable: $4,635 – $3,090 = $1,545
	Cash = $109,000 × 9% × 1/2 = $4,905
June 30 2017	Discount on Bonds Payable: $3,090 – $1,545 = $1,545
	Cash = $109,000 × 9% × 1/2 = $4,905
Dec. 31 2017	Discount on Bonds Payable: $1,545 – $0 = $1,545
	Cash = $109,000 × 9% × 1/2 = $4,905