Answer:
$1,000,000
Explanation:
The Bond Issued less than its face value is issued on the discount. This discount is recorded and amortized until the maturity of bond.
Discount on the Bond = Face value - Issuance value = ($1,000 x 1,000) - ($1,000 x 1,000) x 99% = $1,000,000 - $990,000 = $10,000
Journal Entry
Dr. Cash $990,000
Dr. Discount on Bond $10,000
Cr. Bond Payable $1,000,000
Bond Liability on June 30, 20x5 is $1,000,000.
