On January 31, 2018, Dunkin Logistics, Inc., issued five-year, 3% bonds payable with a face value of

Question:

On January 31, 2018, Dunkin Logistics, Inc., issued five-year, 3% bonds payable with a face value of $8,000,000. The bonds were issued at 93 and pay interest on January 31 and July 31. Dunkin Logistics amortizes bond discounts using the straight-line method. Record

(a) The issuance of the bonds on January 31, 2018,

(b) The semiannual interest payment and amortization of the bond discount on July 31, 2018,

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...

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