Refer to the data in PE 10-17. Assuming all interest has been accounted for, make the necessary

Question:

Refer to the data in PE 10-17. Assuming all interest has been accounted for, make the necessary journal entry (or entries) following transactions to record the retirement of the bonds at the end of 20 years.

Data from PE 10-17

Arisael Company issued 20-year, $750,000 bonds with a stated rate of interest of 9%, compounded semiannually. The effective interest rate demanded by investors for bonds of this level of risk is also 9%. Since these bonds are issued at face value (i.e., the stated rate of interest is equal to the interest rate demanded by investors for bonds of this level of risk), the issuance price is also $750,000.

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...