Black Company issued 10-year, 6% bonds on January 1, 2011. These bonds pay interest every June 30

Question:

Black Company issued 10-year, 6% bonds on January 1, 2011. These bonds pay interest every June 30 and December 31. A partial amortization table follows:

Required:
a. Calculate the face value of the bonds that were issued on January 1, 2011.
b. Calculate the yield rate of interest on these bonds.
c. Complete the amortization table for 2011.
d. On January 1, 2012, Black retired the bonds at 98 (i.e., at 98% of their face value). Prepare the journal entry to record the retirement of the bonds.

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...