Jan 1, 2015, L issued 700 bonds, each with a face value of $1,000, =700,000 stated interest
Fantastic news! We've Found the answer you've been seeking!
Question:
- Jan 1, 2015, L issued 700 bonds, each with a face value of $1,000, =700,000
- stated interest rate of 6% paid annually on December 31
- maturity date of December 31, 2017.
- market interest rate was 7 percent, so the total proceeds from the bond issue were $681,631. L uses the straight-line bond amortization method
Journal entries for these 5 events
- Record the issuance of 700 bonds at face value of $1,000 each for $681,631.
- Record the interest payment on December 31, 2015.
- record the interest payment on Dec 31 2016
- Record the interest and face value payment on December 31, 2017.
- record the retirement of the bonds at quoted price of 97 assuming retired Jan 1 2017
Posted Date: