If $112,000 of 12 Percent Bonds Are Issued (At Face

question 158

Short Answer

If $112,000 of 12 percent bonds are issued (at face value) one month after the last semi-annual interest date, the entry to record the issue is:

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Definitions:

United States

Refers to a country located primarily in North America, comprising 50 states and known for being a major political and economic power globally.

Stated Value

A value that is assigned to a share of stock by the issuing company, which may bear no relation to its market value.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

No-Par Common Stock

Shares issued without a par value, meaning their value is determined by the market rather than a set face value.