BONDS ISSUED AT FACE VALUE Ramona Arroyo Co. issued the following bonds: Date of issue and sale:
Question:
BONDS ISSUED AT FACE VALUE Ramona Arroyo Co. issued the following bonds:
Date of issue and sale: ....April 1, 20-1
Principal amount: ......$250,000
Sale price of bonds: .....100
Denomination of bonds: ....$5,000
Life of bonds: ........10 years
Stated rate: ..........9%, payable semiannually on September
..............30 and March 31
REQUIRED
Prepare journal entries for:
(a) Issuance of the bonds.
(b) Interest payment on the bonds on September 30, 20-1.
(c) Year-end adjustment on the bonds for 20-1.
(d) Reversing entry for the beginning of 20-2.
(e) Interest payments on the bonds for 20-2 (March 31 and September 30).
(f) Redemption at maturity.
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: