A Company Issued 9%,10-Year Bonds with a Par Value of $1,000,000

question 53

Essay

A company issued 9%,10-year bonds with a par value of $1,000,000 on September 1,2013,when the market rate was 9%.The bonds were dated June 30,2013.The bond issue price included accrued interest.Interest is paid semiannually on December 31 and June 30.
(a) Prepare the issuer's journal entry to record the issuance of the bonds.
(b) Prepare the issuer's journal entry to record the semiannual interest payment on December 31,2013.

---

Definitions:

Agency Decisions

Decisions made by an entity or individual acting on behalf of another entity or individual, usually within a legal or organizational context.

Common Law

A body of unwritten laws based on legal precedents established by the courts.

Coomer v. Kansas City Royals Baseball Corp.

A legal case that addressed the issue of spectator injuries at sporting events and the scope of liability for professional sports teams.

Hotdog Toss

A promotional or entertainment activity commonly seen at sports events where hotdogs are thrown or launched into the audience.