A Company Has $200,000 Par Value,10% Bonds Outstanding

question 118

Essay

A company has $200,000 par value,10% bonds outstanding.Prepare the company's journal entry to retire the bonds at the date of maturity.

---

Definitions:

Book Value

The value of an asset as it appears on a balance sheet, calculated by subtracting any depreciation or amortization from the asset's original cost.

Available-For-Sale

A classification used in accounting for financial assets, denoting securities that a company plans to sell but not immediately or in the near term.

Vertically Integrated

A strategy where a company expands its operations into different stages of production within the same industry, from raw materials to finished products.

Horizontally Growth

Expansion strategy whereby a company grows by acquiring or merging with firms in the same industry at the same level of the supply chain.