contestada

Ten years ago, cary company issued $1,500,000 of 7 percent, 10-year bonds at a price of 95. On the maturity date of january 2, after making the final interest payment and recording the related entry, cary retired the bonds.

Respuesta :

All discount on bonds payable would be amortized on maturity date so carrying value is equal to face value of bonds

What are bonds?

A bond is a sort of financial asset in which the issuer owes the bearer a debt and is obligated to return the principle of the bond as well as interest over a predetermined period of time, depending on the conditions. Interest is normally paid at regular periods.

Consider the following journal entry

Journal entry

Date account and explanation  debit                         credit

Jan 2 Bonds payable                  1.500.000  

      TO Cash                                                                 1.500.000

             (To record redemption of bonds)  

To learn more about bonds from the given link:

https://brainly.com/question/25965295

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