|Purpose:||(L.O. 5) This exercise will illustrate the journal entries required to record the issuance of bonds at face value and the entries to account for the related interest expense.|
The Hale Corporation issued bonds dated April 1, 2014. These bonds are 5-year term bonds with a face value of $1,000 each and a stated interest rate of 7%. Interest is payable semiannually on October 1 and April 1.