On May 1, 2016, Ramden Company issues 13% bonds with a face value of $2 million. The

Question:

On May 1, 2016, Ramden Company issues 13% bonds with a of $2 million. The bond contract calls for retirement of the bonds in periodic installments of $200,000, starting on May 1, 2017, and continuing on each May' 1 thereafter until all bonds arc retired.
Required:
How would the preceding information appear in Ram den’s balance sheets on December 31,2016 and 2017?
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...