KD's Cowboy Bar and Grill Ltd. is a country and westernstyle restaurant and club chain based in

Question:

KD's Cowboy Bar and Grill Ltd. is a country and western—style restaurant and club chain based in Red Deer, Alberta, that specializes in barbecue food and country music. On January 1, it issued five-year, semi-annual bonds with a of $200,000, to provide capital to expand the chain. The bond rate was 8% and on the date of sale the yield rate was 10%. Interest payments are to be made each June 30 and December 31.
Required:
a. Determine the selling price of these bonds and provide the journal entry to record their sale on January 1.
b. Provide the journal entries to record the first two interest payments.
c. What amount will be reported for the bond liability on the year-end statement of financial position? 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...