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Chapter 12: 4TI (page 636)

Herrera Corporation issued a $400,000, 4.5%, 10-year bond payable on January 1, 2018. Journalize the payment of the bond

payable at maturity. (Give the date.)

Short Answer

Expert verified

The bond payable debited and cash account is credited with $400,000 when the payment of the bonds is made.

Step by step solution

01

Definition of bonds

The bond is a type of long-term liability in which the company issues bonds to the general public for a fixed period.

02

Journal entry at maturity of bonds

Date

Particulars

Debit

Credit

January 1, 2028

Bonds Payable

$400,000

Cash

$400,000

(Being entry for the payment of the bond at maturity)

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