Issuing Bonds at a Discount On the first day of the fiscal year, a company issues...

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Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $7,700,000, 5, 10-year bond that pays rec

business accounting

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Answer 1

Answer #1

Solution

Account Title and Explanation	Debit	Credit
Cash	$ 6,197,585
Discount on bonds payable	$ 1,502,415
Bonds payable		$ 7,700,000
(To record Issuance of bonds )

Working

Bond issue price	$ 6,197,585
Less: Face value	$ 7,700,000
Discount on bonds payable	$ 1,502,415

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Answer 2

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