Bonds Payable at Par
Illustrative Entries
| 1-1-X1 |
Cash |
100,000 |
||
| Bonds Payable |
100,000 |
|||
| To record issuance of 100, 8%, 5-year bonds at par (100 X $1,000 each) | ||||
| periodically |
Interest Expense |
4,000 |
||
| Cash |
4,000 |
|||
| To record interest payment (this entry occurs on every interest payment date at 6 month intervals -- $100,000 X 8% X 6/12) |
| 12-31-X5 |
Bonds Payable |
100,000 |
||
| Cash |
100,000 |
|||
| To record payment of face value at maturity |