Dalton Company issued 5-year, 7.5% bonds with a total face value of $900,000 on January 1, 2020,

Question:

Dalton Company issued 5-year, 7.5% bonds with a total face value of $900,000 on January 1, 2020, for $950,000. The bonds pay interest on June 30 and December 31 of each year.

Required:

1. Prepare an amortization table

2. Prepare the entries to recognize the interest payments made on June 30, 2020, and December 31, 2020.

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...