Crystal Gems Company issued 10-year, 6% bonds on January 1, 2011. These bonds pay interest every June

Question:

Crystal Gems Company issued 10-year, 6% bonds on January 1, 2011. These bonds pay interest every June 30 and December 31. A partial amortization table follows:

Required:
a. Calculate the face value of the bonds that were issued on January 1, 2011.
b. Calculate the yield rate of interest applicable to these bonds.
c. Complete the amortization table for 2011 and 2012.
d. On January 1, 2013, Crystal Gems retired the bonds by repurchasing them at a price of $208,000. Prepare the journal entry to record the repurchase and retirement of the bonds.

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...