Suppose Solomon Brothers purchases $500,000 of 6% annual bonds of Morin Corporation at face value on January

Question:

Suppose Solomon Brothers purchases $500,000 of 6% annual bonds of Morin at on January 1, 2018. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2022. Solomon intends to hold the Morin bond investment until Journalize Solomon Brothers's transactions related to the bonds for 2018.
2. Journalize the entry required on the Morin bonds date. (Assume the last interest payment has already been recorded.)
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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...