Sonoma Company, issued 5-year, 8.6% bonds with a total face value of $750,000 on January 1, 2020,
Question:
Sonoma Company, issued 5-year, 8.6% bonds with a total face value of $750,000 on January 1, 2020, for $711,450. 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, 2020, and December 31, 2020.
Face ValueFace 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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