Sub Part-1
Bonds Issuance:
The Bonds issuance by the company is a source of long term financing and is issued at a par value when the prevailing market rate of interest and stated rate of interest on bonds is equal. In such scenario, the investors are getting the same
The
Sub Part-2
Accounting treatment of interest payment:
The Accounting entry required to be passed at each interest period is debiting the total interest expense and credit being made to the cash account for cash interest paid.
The Journal entries for two interest payments.
Sub Part3.
Maturity of Bonds:
The bonds issued shall be repaid at the end of contracted life of the bonds under which the bonds payable shall be debited to Bonds payable and the payment need to be credited to Cash account as the cash is paid out for redemption.
The Journal entry for the maturity of bonds payable.

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Chapter 14 Solutions
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
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