Hathaway Ltd 's general ledger reported a balance in its Bonds Payable account of $950,000 at November 30 The bonds had a face value of $1 million, and were redeemed on November 30, immediately after interest had been paid to the bondholders Prepare the journal entry to record the redemption, assum...

a Nov 30 Bonds Payable 950000 Loss on Bond R ...

Hathaway Ltd.'s general ledger reported a balance in its Bonds Payable account of $950,000 at November 30.

Question:

Hathaway Ltd.'s general ledger reported a balance in its Bonds Payable account of $950,000 at November 30. The bonds had a of $1 million, and were redeemed on November 30, immediately after interest had been paid to the bondholders. Prepare the journal entry to record the redemption, assuming the bonds are redeemed at
(a) 99,
(b) 101.
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...