Bonds: They are long term negotiable instruments of debt issued by corporate entities to secure funds from the public. These funds are used to either fund long term capital expenditure or similar long term investment opportunities. They represent steady income for the investor in the form of periodic interest payments by the entity issuing the bond. Bonds are issued at par, at premium or at a discount. Journal entries are the first step in recording financial transactions and preparation of financial statements. These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits. Assets and expenses have debit balances and Liabilities and Incomes have credit balances. Correct journal Entry for the transaction retirement of Bond at maturity

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Chapter 14, Problem 6QC

To determine

Bonds:

They are long term negotiable instruments of debt issued by corporate entities to secure funds from the public. These funds are used to either fund long term capital expenditure or similar long term investment opportunities.

They represent steady income for the investor in the form of periodic interest payments by the entity issuing the bond. Bonds are issued at par, at premium or at a discount.

Journal entries are the first step in recording financial transactions and preparation of financial statements. These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances.

Correct journal Entry for the transaction retirement of Bond at maturity

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