Preparing a Journal Entry: Issuance of Bonds
XYZ, Inc. issued 8% bonds with a face value of $100,000 on January 1 of the current year. The bonds come due in five years. Interest was to be paid annually on December 31st. At the time of issuance the market rate of interest was 6%. (a) Make the journal entries to record the issuance of the bonds. (b) Make the entry to