On May 1, 2019, Ramden Company issues 13% bonds with a face value of $2 million. The

Question:

On May 1, 2019, Ramden Company issues 13% bonds with a face value of $2 million. The bond contract calls for retirement of the bonds in periodic installments of $200,000, starting on May 1, 2020, and continuing on each May 1 thereafter until all bonds are retired.

Required:
How would the preceding information appear in Ramden’s balance sheets on December 31, 2019, and 2020?

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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