A $260,000 issue of bonds that sold for $255,000 matures on June 25, 2020. The journal entry to record the payment of the bond on the maturity date is to:

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When bonds mature, the company needs to pay back the face value of the bonds to the bondholders, regardless of the price at which the bonds were issued. In this case, the face value of the bonds is $260,000, so the company needs to debit Bonds Payable for $260,000 to remove the liability from its books and credit Cash for $260,000 to reflect the outflow of cash.

A $260,000 Issue of Bonds That Sold for $255,000 Matures