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

question 118

Essay

A company issued 9%,10-year bonds with a par value of $1,000,000 on September 1,2010 when the market rate was 9%.The bonds were dated June 30,2010.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 31,2010.

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Definitions:

Adaptive Growth

The capacity of an individual or organization to evolve and grow in response to changes and challenges.

Perceived Ability

How individuals believe in their competence or skills in particular areas, which may or may not accurately reflect their actual ability.

Organizational Trust Model

A conceptual framework used to understand and measure the level of trust within organizations, often highlighting the importance of trust in facilitating cooperation, commitment, and effective communication.

Compassion

A feeling of deep sympathy and sorrow for another who is struck by misfortune, accompanied by a desire to alleviate the suffering.