St. Cloud Manufacturing, Inc., issued five-year, 9.2 percent bonds with a total face value of $500,000 on

Question:

St. Cloud Manufacturing, Inc., issued five-year, 9.2 percent bonds with a total face value of $500,000 on December 31, 2008, for $484,000. 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, 2009, and December 31, 2009.

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...