Answer:
Debit Bonds Payable for $1,500,000
Credit Cash for $1,500,000.
Explanation:
Although this bonds were issued at a discount, but the Discount on Bonds Payable account will have zero balance on the day of maturity because of the entry that has been made on each interest payment date.
Therefore, the necessary journal entry for January 2, 2019 to complete is as follows:
Debit Bonds Payable for $1,500,000
Credit Cash for $1,500,000
This entry will appear as follows:
<u>Date Name of Account DR ($) CR ($) </u>
02 Jan '19 Bond payable 1,500,000
Cash 1,500,000
<u><em> (To record retirement of 10-year bonds at maturity.) </em></u>
