Disclosure of Serial Bonds Payable On May 1, 2007 the Ramden Company issues 13% serial bonds with

Question:

Disclosure of Serial Bonds Payable On May 1, 2007 the Ramden Company issues 13% serial bonds with a of $2 million. The bond contract calls for retirement of the bonds in periodic installments of $200,000, starting on May 1, 2008 and continuing on each May 1 thereafter until all bonds are retired.

Required
How would the preceding information appear in the Ramden Company’s balance sheets on December 31, 2007 and 2008?

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...