Dear Texas Tornado,
Have you had your dog since he was a puppy?
Have you noticed the lumps on the sides of the penis coming and going?
There is a circular gland around the penis called the "bulbis glandis." It is about mid way down the penile sheath. When it becomes engorged with blood, it does look like two round organs on each side of the penis but it sure is not testicles. The bulbis glandis is what keeps the dogs tied together when they mate.
The testicles drop through an opening in the thigh called the inguinal cannal. They should end up at the very end of your dogs abdomen. If they have not dropped by now they are not going to. I recommend you have them removed from the abdomen, or inguinal cannal, because studies show that leaving them in there predisposes them to turning cancerous.
I hope this helps.