Prepare the journal entry for the issuance of the bonds. Assume the bonds are issued for cash on January 1, 2017.
Enviro Company issues 10%, 10-year bonds with a par value of $300,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 12%, which implies a selling price of 88 1/2.
Prepare the journal entry for the issuance of these bonds.
Assume the bonds are issued for cash on January 1, 2017.
Garcia Company issues 10.00%, 15-year bonds with a par value of
$330,000 and semiannual interest payments. On the issue date, the
annual market rate for these bonds is 8.00%, which implies a
selling price of 119 1/2.
Solution:(1): Following is the required journal entry:
Cash A/C Debit. $265,500
Discount on Bonds Payable A/C Debit. $34,500
Bonds Payable A/C Credit. $300,000
Solution:(2): Following is the required journal entry:
Cash A/C Debit. $394,350
Premium on Bonds Payable A/C Credit. $64,350
Bonds Payable A/C. Credit. $330,000
Prepare the journal entry for the issuance of the bonds. Assume the bonds are issued for...
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Help Save & Saved Ch The following information applies to the questions displayed below. Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 'Y2 repare the journal entry for the issuance of the bonds. Assume the bonds are issued for cash on January 1,