REDEMPTION OF BONDS ISSUED AT FACE VALUE Okano Medical Lab issued $300,000 in bonds at face value

Question:

REDEMPTION OF BONDS ISSUED AT FACE VALUE Okano Medical Lab issued $300,000 in bonds at face value 10 years ago and has paid semiannual interest payments through the years.

(a) Assume the bonds are redeemed at face value.

(b) Assume that $25,000 of the bonds are redeemed at 103.

Prepare the journal entries to record (a), (b), and (c).

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...