On January 1, 2013, Encino Company issued bonds with a face value of $1,000,000 and a maturity
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1. Make all entries necessary to record the sale and purchase of the bonds on each company's books.
2. Prepare the adjusting entries as of December 31, 2013, for both companies. Assume SeaRay is carrying the bonds as a long-term held-to-maturity security.
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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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