PB5. LO 13.3Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized...

LO 13.3Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions.

1. July 1, 2018: entry to record issuing the bonds


2. June 30, 2019: entry to record payment of interest to bondholders


3. June 30, 2019: entry to record amortization of discount


4. June 30, 2020: entry to record payment of interest to bondholders


5. June 30, 2020: entry to record amortization of discount