On January 1, 2014, Hannigan Company issued bonds with a face value of $600,000. The bonds carry

Question:

On January 1, 2014, Hannigan Company issued bonds with a of $600,000. The bonds carry a stated interest of 7% payable each January 1.
a. Prepare the journal entry for the issuance assuming the bonds are issued at 97.
b. Prepare the journal entry for the issuance assuming the bonds are issued at 102.
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...