On January 1, a company issues bonds dated January 1 with a par value of $340,000....

 

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On January 1, a company issues bonds dated January 1 with a par value of $340,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $353,122, The journal entry to record the issuance of the bond is Multiple Choice Debit Cash $353,122. credit Bonds Payable $353,122. Debit Cash $340,000. debit Premium on Bonds Payable $13.122: credit Bonds Payable $353,122. Discussions Debit Cash $353,122; credit Discount on Bonds Payable $13,122. credit Bonds Payable $340.000, Debit Bonds Payable $340,000, debit Bond Interest Expense $13,122; credit Cash $353.122. Debit Cash $353.122; credit Premium on Bonds Payable $13,122; credit Bonds Payable On January 1, a company issues bonds dated January 1 with a par value of $340,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $353,122, The journal entry to record the issuance of the bond is Multiple Choice Debit Cash $353,122. credit Bonds Payable $353,122. Debit Cash $340,000. debit Premium on Bonds Payable $13.122: credit Bonds Payable $353,122. Discussions Debit Cash $353,122; credit Discount on Bonds Payable $13,122. credit Bonds Payable $340.000, Debit Bonds Payable $340,000, debit Bond Interest Expense $13,122; credit Cash $353.122. Debit Cash $353.122; credit Premium on Bonds Payable $13,122; credit Bonds Payable

Answer rating: 100% (QA)

Debit Cash 353122 credit Premium on Bonds Payable 13122 credit Bonds Payable 340000 Expl... View the full answer