On January 1, 2018, Electricians Credit Union (ECU) issued 8%, 20-year bonds payable with face value of

Question:

On January 1, 2018, Electricians Credit Union (ECU) issued 8%, 20-year bonds payable with of $400,000. The bonds pay interest on June 30 and
December 31. The issue price of the bonds is 104.
Journalize the following bond transactions:
a. Issuance of the bonds on January 1, 2018.
b. Payment of interest and amortization on June 30, 2018.
c. Payment of interest and amortization on December 31, 2018.
d. Retirement of the bond at on December 31, 2037, assuming the last interest payment has already been recorded.
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...