- FULL SCREEN PRINTER VERSION BACK ments E10.8 (LO 2) Nick Bosch has prepared the following list of statements about bonds. 1. Bonds are a form of interest-bearing notes payable. 2. Secured bonds have specific assets of the issuer pledged as collateral for the bonds. 3. Secured bonds are also known as debenture bonds. 4. A conversion feature may be added to bonds to make them more attractive to bond buyers. 5. The rate used to determine the amount of cash interest the borrower pays is called the stated rate. 6. Bond prices are usually quoted as a percentage of the face value of the bond. 7. The present value of a bond is the value at which it should sell in the marketplace. Instructions Identify each statement as true or false. If false, indicate how to correct the statement. for E10.9 (LO 3) On January 1, 2020, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. ds, and Interest is payable annually on January 1. crual of Instructions Prepare journal entries to record the following. a. The issuance of the bonds. b. The accrual of interest on December 31, 2020. c. The payment of interest on January 1, 2021