On July 1,2106,Jordan Equipment Dealer issued $600,000 of 9% bonds payable that mature in seven years.These bonds were issued at face value and pay interest each June 30 and December 31.Each semiannual interest payment is $27,000.

Question

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The bond was issued at face value, meaning that the proceeds received by the company was equal to the face value of the bond, which is $600,000. The semiannual interest payment is given as $27,000, which is 9% of the face value of the bond. Therefore, the information given in the statement is true.

On July 1,2106,Jordan Equipment Dealer Issued $600,000 of 9% Bonds