... Expense Interest Payable 10- 41 10, 000 10, 000 LO Issuing Bonds at Face Value Illustration: On January 1, 2017, Candlestick, Inc issues $100 ,000, five-year, 10% bonds at 100 (100 % of face value) Assume ... five-year, 10% bonds at 100 (100 % of face value) The entry to record the sale is: Jan Cash 100 ,000 Bonds Payable 10- 40 100 ,000 LO Issuing Bonds at Face Value Illustration: On January 1, 2017, Candlestick, ... transaction 10- 36 LO Accounting for Bond Transactions Issue at Face Value, Discount, or Premium? Illustration 10- 8 Interest rates and bond prices Bond Contractual Interest Rate 10% 10- 37 LO Accounting...