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

Question:

On June 30, Dogwood Limited issues 8%, 20-year bonds payable with a face value of $ 130,000. The bonds are issued at 94 and pay interest on June 30 and December 31.

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.

Face Value
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...