Question: BONDS ISSUED AT FACE VALUE ON AN INTEREST DATE ABC Companys accounting year ends on December 31. On December 31, 200A, ABC issued 10-year, 12%

BONDS ISSUED AT FACE VALUE ON AN INTEREST DATE

ABC Companys accounting year ends on December 31. On December 31, 200A, ABC issued 10-year, 12% bonds with a face value of 100,000. The bonds are dated December 31, call for semi-annual interest payments on June 30 and December 31, and mature in 10 years on December 31. ABC made the required interest and principal payments when due.

REQUIRED:

1. Identify the entry to record the issuance of bonds on December 31.

2. Determine the entry to record the payment of interest for June 30.

3. Ten years later, the maturity date, identify the entry for the last payment of interest and the amount of the bond.

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