Journal
1 | Cash | 54,834 | |
Discount on bonds payable | 7,166 | ||
Bonds payable | 62,000 | ||
2 | Interest expense | 1,645 | |
Discount on bonds payable | 95 | ||
Cash | 1,550 |
Discount on bonds payable = Par value of bonds - Cash proceeds from issuance of bonds
= 62,000 - 54,834
= $7,166
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