A company issues $500,000 of 6%, 10-year bonds dated January 1, 2017 that mature on December 31, 2026. The bonds pay interest semiannually on June 30 and December 31 each year. If bonds are sold at par value, the issuer records:

cash 500,000 debit

 bonds payable 500,000 credit

Explanation:

as the bond are sold at par the present value of the coupon payment and maturity discounted will give the same value as the face value of the bond:

Proof:

C15,000.000

time20

rate0.03

PV$223,162.1229

Maturity   500,000.00

time   20.00

rate  0.03

PV   276,837.88

PV c$223,162.1229

PV m  $276,837.8771

Total$500,000.0000

ell really, the setting was in franklin and lincoln visits franklin even after he moved to columbus, and he went to school

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.