Question

Sunland Company issued $332,000 of 5%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1

Prepare the journal entry to record the redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1, 2027 Bonds Payable 315,400 Cash 315,400 e Textbook and Media List of Accounts Attemnts: 2 of 3 used Soye forlater Submit Answer

Answer 1

Date	Accounts and explanation	Debit(in $)	Credit(in $)
Jan 1 2030	Bonds Payable	3,32,000
	Cash		3,32,000
Since the Bond interest has been paid and recorded hence the par value of the Bond will be paid on maturity