Stevens Corporation issued $700,000 of 9% bonds on May 1, 2012. The bonds were dated January 1,

Question:

Stevens issued $700,000 of 9% bonds on May 1, 2012. The bonds were dated January 1, 2012, and mature on January 1, 2017, with interest payable each July 1 and January 1. The bonds were issued at plus accrued interest. Prepare the company’s journal entries for
(a) The May 1 issuance,
(b) The July 1 interest payment, and
(c) The December 31 adjusting entry.
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...