Slater purchased a bond on January 1, 2014, for $

Slater purchased a bond on January 1, 2014, for $ 100,000. The bond has a face value of $ 100,000 and matures in 10 years. The bond pays interest on June 30 and December 31 at a 4% annual rate. Slater plans on holding the investment until maturity.


Requirements

1. Journalize the 2014 transactions related to Slater’s bond investment. Explanations are not required.

2. Journalize the transaction related to Slater’s disposition of the bond at maturity. Determine the date. (Assume the last interest payment has already been re-corded.) Explanations are not required.


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...