Larkspur, Inc. issues $251,000, 10-year, 10% bonds at 96. Prepare the journal entry to record the...

Question

Question

Larkspur, Inc. issues $251,000, 10-year, 10% bonds at 96. Prepare the journal entry to record the sale of these bonds on Marc

Answer 1

Answer #1

Account Titles and Explanation	Debit	Credit
Cash	240,960
Discount on bonds payable	10,040
Bonds payable		251,000

Par value of bonds = 251,000

Issue price of bonds = 251,000 x 96%

= 240,960

Discount on bonds payable = Par value of bonds - Issue price of bonds

= 251,000-240,960

= $10,040

Kindly comment if you need further assistance. Thanks‼!

Answer 2

Similar Homework Help Questions

Larkspur, Inc. issues $251,000, 10-year, 10% bonds at 96. Prepare the journal entry to record the...

Larkspur, Inc. issues $251,000, 10-year, 10% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Larkspur, Inc. issues $273,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the...

Larkspur, Inc. issues $273,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Skysong, Inc. issues $267,000, 10-year, 6% bonds at 96. Prepare the journal entry to record the...

Skysong, Inc. issues $267,000, 10-year, 6% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Interest Expense 191880 Discount on Bonds Payable 4680 Interest Payable 187200

Shamrock, Inc. issues $266,000. 10-year, 10% bonds at 98. Prepare the journal entry to record the sale of these bonds o...

Shamrock, Inc. issues $266,000. 10-year, 10% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Teal Mountain Inc. issues $270,000. 10-year, 6% bonds at 98. Prepare the journal entry to record...

Teal Mountain Inc. issues $270,000. 10-year, 6% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Pharoah Company issues $440,000, 10-year, 5% bonds at 96. Prepare the journal entry to record the...

Pharoah Company issues $440,000, 10-year, 5% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 1 Notes Payable 440000 Interest Payable 22000 Cash 462000

Brief Exercise 10-08 Skysong, Inc. issues $256,000, 10-year, 7% bonds at 98. Prepare the journal entry...

Brief Exercise 10-08 Skysong, Inc. issues $256,000, 10-year, 7% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid...
Sandhill Co. issues $350,000. 20-year, 10% bonds at 101. Prepare the journal entry to record the...

Sandhill Co. issues $350,000. 20-year, 10% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Sheridan Company issues $280,000, 20-year, 10% bonds at 102. Prepare the journal entry to record the...

Sheridan Company issues $280,000, 20-year, 10% bonds at 102. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Ivanhoe Company issues $265,000. 20-year, 10% bonds at 103. Prepare the journal entry to record the...

Ivanhoe Company issues $265,000. 20-year, 10% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit