Richter Corporation sold $1,000,000 face value of bonds at 104 on January 1, 2020. These bonds have

Question:

Richter sold $1,000,000 of bonds at 104 on January 1, 2020. These bonds have a 7% stated rate and mature in 4 years. Interest is payable on June 30 and December 31 of each year.
Required:
1. Prepare a bond amortization table assuming straight-line amortization.
2. Prepare the journal entry for December 31, 2021.
3. Indicate how these bonds will appear in Richter's at December 31, 2021.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...