BONDS ISSUED AT FACE VALUE Ito Co. issued the following bonds: Date of issue and sale: ........April
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BONDS ISSUED AT FACE VALUE Ito Co. issued the following bonds:
Date of issue and sale: ........April 1, 20-1
Principal amount: ..........$300,000
Sale price of bonds: .........100
Denomination of bonds: ......$5,000
Life of bonds: ..........5 years
Stated rate: ...........10%, 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 ValueFace 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...
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DATE 201 Apr 1 Cash Bonds Payable Sept 30 Bond Interest Expense Cash DESCRIPTION Dec 31 Bond Int...View the full answer
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