On July 1,2106,Jordan Equipment Dealer issued $510,000 of 6% bonds payable that mature in eight years.These bonds were issued at face value and pay interest each June 30 and December 31.Each semiannual interest payment is $15,300.

Question

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The information provided in the question states that the bonds were issued at face value, which means the initial proceeds received by the company is equal to the face value of the bonds. The face value of the bonds is $510,000. The bonds pay interest each June 30 and December 31, which means there are two interest payments every year, each of which is $15,300. The bonds mature in eight years, which means the bondholders will receive the face value of the bonds ($510,000) at the end of the eighth year. Therefore, all the given information is consistent, and the statement is true.

On July 1,2106,Jordan Equipment Dealer Issued $510,000 of 6% Bonds