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ten years ago, cary company issued $1,500,000 of 7 percent, 10-year bonds at a price of 95. on the maturity date of january 2, after making the final interest payment and recording the related entry, cary retired the bondsplete the necessary journal entry for january 2 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

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On January 2, the journal entry to record the bonds will be Bond payable A/c Dr for $1,500,000, to Cash A/c for $1,500,000.

Bonds are fixed-income securities that reflect loans from investors to borrowers. A bond can be compared to an agreement outlining the terms of the loan and the associated payments between both the lender and borrower. Businesses, cities, states, and sovereign nations utilize bonds to fund operations and initiatives. Bondholders are the issuer's debtors or creditors.

Bond specifications typically have included the terms regarding adjustable or fixed interest cash payments by the borrower, as well as the end date by which the principle of the loan is anticipated to be paid to a bond owner. There are different kinds of bonds that are available in the market.

When a person purchases a bond, he lends some money to the issuer of bond for a certain period and the issuer promises to return him the money along with regular interest payment.

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