On January 31, Doherty Logistics, Inc., issued five-year, 7% bonds payable with a face value of $8,000,000.

Question:

On January 31, Doherty Logistics, Inc., issued five-year, 7% bonds payable with a of $8,000,000. The bonds were issued at 96 and pay interest on January 31 and July 31. Doherty Logistics, Inc., amortizes bonds by the straight-line method. Record
(a) Issuance of the bonds on January 31,
(b) The semiannual interest payment and amortization of bond discount on July 31, and
(c) The interest accrual and discount amortization on December 31.

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...