The company had planned to issue bonds with a face value of $100,000 on January 1. Because

Question:

The company had planned to issue bonds with a face value of $100,000 on January 1. Because of regulatory delays, the bonds were not issued until February 1. The bonds have a coupon rate of 9%, which is equal to the market rate of interest (for companies of similar risk) on the issue date of February 1. Interest is to be paid semiannually; the first interest payment of $4,500 [$100,000 × 0.09 × 6/12] will be made on July 1, as originally scheduled. Make the journal entry necessary on the books of the issuer on February 1 to record the issuance of these bonds.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... 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...