Bonds

On January 1, 2020, Jonas Corp. issues 6% 25-year bonds with a face value of $1,000,000. The bonds were issued at 101.

a. What is the carrying value of the bonds at issue?

b. Were the bonds issued at a premium or a discount?

c. Was the market interest rate higher, lower , or equal to the stated rate?

d. Assuming the traditional bond amount , how many physical bond certificates were issued?

e. Record the entry for Jonas Corp. upon issuance of the bonds on January 1, 2020.

f. Record the year-end entry for Jonas Corp. to record interest expense at December 31 2020. Assume that Jonas Corp. uses straight-line amortization for any discounts or premiums

1. Bonds (10 points): On January 1, 2020, Jonas Corp. issues 6%, 25-year bonds with a face value of $1,000,000. The bonds were issued at 101. a What is the carrying value of the bonds at issue? b. Were the bonds issued at a premium or a discount? c. Was the market interest rate higher, lower, or equal to the stated rate? I d. Assuming the traditional bond amount, how many physical bond certificates were issued? e Record the entry for Jonas Corp. upon issuance of the bonds on January 1, 2020 f Record the year-end entry for Jonas Corp. to record interest expense at December 31, 2020. Assume that Jonas Corp. uses straight-line amortization for any discounts or premiums