On January 1, 2013, Hackman Corporation issued $1 million face value 12% bonds dated January 1, 2013,

Question:

On January 1, 2013, Hackman Corporation issued $1 million face value 12% bonds dated January 1, 2013, for $1,023,000. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2017. Hackman uses the straight-line amortization method.

Required:

Record the issuance of the bonds and the first two interest payments.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...