Homework Answers
The journal entry to record the issuance of the bond.
|
Event |
General Journal |
Debit |
Credit |
|
1 |
Cash A/c [$90 Million x 106%] |
95.4 |
|
|
To Premium on Bonds Payable A/c [$95.40 Million - $90 Million] |
5.4 |
||
|
To Bond Payable A/c [$90 Million] |
90.0 |
||
|
[Journal entry to record the issuance of Bond] |
|||
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