The company issued convertible bonds with a total face value of $100,000 for $107,000. If the bonds

Question:

The company issued convertible bonds with a total of $100,000 for $107,000. If the bonds had been issued without the conversion feature, their issuance price would have been $98,000. Make the journal entry necessary to record the issuance of the bonds.

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...