On April 1, 2019, Sarkar Sailboats sold 15,000 of its 11%, 15-year, R$1,000 face value bonds to
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Instructions
Prepare the journal entries needed on the books of Sarkar to record the following.
a. April 1, 2019: issuance of the bonds.
b. October 1, 2019: payment of semiannual interest.
c. December 31, 2019: accrual of interest expense.
d. April 1, 2020: payment of semiannual interest.
e. April 2, 2020: extinguishment of 6,000 bonds. (No reversing entries made.)
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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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