Question

Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is [Select ] DR Bonds Payable $787,500 CR Cash $787,500 DR Bonds Payable $750,000 CR Cash $750,000 DR Cash $787,500 CR Bonds Payable $787,500 DR Cash $750,000 CR Bonds Payable $750,000 Assuming interest is paid annually on De Brest payments? [Select] What is the journal entry recorded when the bonds mature? [Select]

Answer 1

Answers

at Isseu the BOnd At Par

1) DR Cash $ 750,000 CR Bonds Payable $ 750,000

Interest Paid annually (750,000*5%) = $37,5000

2) DR Interest Expenses $ 37,500 CR Cash $ 37,500

Bond MAture

3) DR Bonds Payable $ 750,000 CR Cash $ 750,000