Suppose Jenner and Sons purchases $700,000 of 4.5% annual bonds of McPhee Corporation at face value on

Question:

Suppose Jenner and Sons purchases $700,000 of 4.5% annual bonds of McPhee at on January 1, 2016. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2020. Jenner intends to hold the McPhee bond investment until
Journalize Jenner and Sons’s transactions related to the bonds for 2016.
2. Journalize the entry required on the McPhee bonds date. 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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...