December 31. TA 2941 - Spring 2942: Bilbo, Gandalf and Beorn stay at Beorn's hall at the end of their journey before heading home.   (Dates from the Atlas of Middle-Earth)
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For long years the Dwarves of Erebor, the Lonely Mountain, lived in peace and wealth. They had a good relation to their neighbours with which they had a lot of trade and they mined big treasures from inside the mountain.
The Dwarves have before often had troubles with Dragons, but Erebor was powerful and well protected. Nevertheless one day there came a vast, red-golden Dragon named Smaug through the air and destroyed and ate the Dwarves of Erebor and the Men of the neighbouring town Dale, except some (not even a few, but Smaug couldn't be everywhere) that could escape.
The palace of the Dwarf-king became his new bedroom and the huge treasure was his bed, on which he laid for such a long time that the gems stucked in his soft belly and made an impenetrable armour. Therefore Smaug became nearly unassailable, being the only King under the Mountain and the Dwarves were gone.

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