Bramble Corp. issues $1.60 million, 10-year, 8% bonds at 95, with interest payable each January 1....

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Bramble Corp. issues $1.60 million, 10-year, 8% bonds at 95, with interest payable each January 1. Prepare the journal entry

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Answer 1

Answer #1

a) Journal entry

Date	account and explanation	Debit	Credit
Jan 1	Cash (1600000*.95)	1520000
	Discount on bonds payable	80000
	Bonds payable		1600000

b) Journal entry

Date	account and explanation	Debit	Credit
Jan 1	Cash (1600000*1.04)	1664000
	Premium on bonds payable		64000
	Bonds payable		1600000

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Answer 2

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Bramble Corp. issues $1.60 million, 10-year, 8% bonds at 95, with interest payable each January 1....

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Bramble Corp. issues $1.60 million, 10-year, 8% bonds at 95, with interest payable each January 1....

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Add Answer to: Bramble Corp. issues $1.60 million, 10-year, 8% bonds at 95, with interest payable each January 1....

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Bramble Corp. issues $1.60 million, 10-year, 8% bonds at 95, with interest payable each January 1....