JournaldrillBonds issued at par
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
On January 1, an interest payment date, Granite Ridge Utilities issues $500,000 of 5-year, 6% bonds at par (100). Interest is paid semiannually.
What this exercise teaches
Cash received is $500,000 x 100% = $500,000, equal to face value. Interest will be recorded only as time passes.
A hint if you get stuck
At par the cash received equals face value, so no discount or premium arises.
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