Question

Brief Exercise 10-11 Pina Colada Corp. issues $2.80 million, 10-year, 6% bonds at 98, with interest payable each January 1. Your answer is partially correct. Try again. Prepare the journal entry to record the sale of these bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 2740000 Discount on Bonds Payable 600000 Bonds Payable 2800000

Answer 1

Answer Credit Date Jan. 1 General Journal Cash ($2,800,000 x 98%) Discount on Bonds Payable ($2,800,000 - $2,744,000) Bonds Payable (To record the issued of Bonds) Debit $2,744,000 $56,000 $2,800,000 Jan. 1 $2,856,000 Cash ($2,800,000 X 102%) Bonds Payable Premium on Bonds Payable ($2,856,000 - $2,800,000) (To record the issue of Bonds) $2,800,000 $56,000