Pennington Corporation issued five-year, 8.6 percent bonds with a total face value of $700,000 on December 31,

Question:

Pennington issued five-year, 8.6 percent bonds with a total of $700,000 on December 31, 2012, for $680,000. The bonds pay interest on June 30 and December 31 of each year.

Required:
1. Prepare an amortization table.
2. Prepare the entries to recognize the bond issuance and the interest payments made on June 30, 2013, and December 31, 2013.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...