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On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000...

On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is paid. Any premiums or discounts are amortized on a straight-line basis. Which of the following will you include in your entry to record the issuance of the bonds?

On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is paid. Any premiums or discounts are amortized on a straight-line basis. Which of the following will you include in your entry to record the issuance of the bonds?

Credit of $120,000 to premium on bonds payable
Credit of $75,000 to interest payable
Debit of $120,000 to discount on bonds payable
Credit of $2,880,000 to bonds payable
Credit of $75,000 to interest payable
Debit of $120,000 to discount on bonds payable

Credit of $2,880,000 to bonds payable

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Answer #1

Cash 3,120,000(3,000,000*104%)

Bonds Payable 3,000,000

Premium on B/P 120,000

Therefore entry would be a

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