Pennington Corporation issued 5-year, 8.6% bonds with a total face value of $700,000 on January 1, 2021,
Question:
Pennington Corporation issued 5-year, 8.6% bonds with a total face value of $700,000 on January 1, 2021, for $680,000. 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 bond issuance and the interest payments made on June 30, 2021, and December 31, 2021.
CorporationA 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...
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