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

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police