On June 30, Dogwood Limited issues 8%, 20-year bonds payable with a maturity value of $130,000. The

Question:

On June 30, Dogwood Limited issues 8%, 20-year bonds payable with a maturity value of $130,000. The bonds sell at 94 and pay interest on June 30 and December 31. Dogwood amortizes bond discount by the straight-line method.

Requirements

1. Journalize the issuance of the bonds on June 30.

2. Journalize the semiannual interest payment and amortization of bond discount on December 31.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...