Devers plc issued 400,000 of 6% bonds on May 1, 2019. The bonds were dated January 1,

Question:

Devers plc issued £400,000 of 6% bonds on May 1, 2019. The bonds were dated January 1, 2019, and mature January 1, 2021, with interest payable July 1 and January 1. The bonds were issued at plus accrued interest. Prepare Devers' journal entries for
(a) The May 1 issuance,
(b) The July 1 interest payment,
(c) The December 31 adjusting entry.
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...