On July 1, 20x5, Claudio Corp. issued bonds with a face value of $800,000. The bonds carry

Question:

On July 1, 20x5, Claudio Corp. issued bonds with a of $800,000. The bonds carry a face interest rate of 8 percent that is payable each July 1 and January 1.
a. Prepare the entry in journal form without explanation for the issuance of the bonds assuming the bonds are issued at 98.
b. Prepare the entry in journal form without explanation for the issuance of the bonds assuming the bonds are issued at 101.
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...