The following is from Disch Corp.'s statement of financial position at December 31, 2011: DISCH CORP. Statement

Question:

The following is from Disch Corp.'s statement of financial position at December 31, 2011:
DISCH CORP.
Statement of Financial Position (partial)
December 31, 2011
Current liabilities
Interest payable.......................................................$45,000
Non-current liabilities
Bonds payable, 6%, due January 1, 2021.......................1,607,650
The bonds have a of $1.5 million and were issued on January 1, 2011 at a price to yield a market interest rate of 5%. Interest is payable semi-annually on January 1 and July 1.
Instructions
(a) Record the payment of bond interest on January 1, 2012, assuming the accrued interest expense is $40,309 and the interest payable is $45,000 at December 31.
(b) Assume that on January 1, 2012, after paying interest, Disch redeems bonds having a of $500,000 at 102. Record the redemption of the bonds.
(c) Record the payment of bond interest on July 1, 2012, on the remaining bonds.
(d) Prepare the adjusting entry on December 31, 2012, to accrue the interest on the remaining 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...