A company issues $300,000 of 8% bonds at face value.

1. Prepare the journal entry to record the bond issue.
2. How will the bond liability be presented on the balance sheet immediately after they are issued?
3. Assume that instead of being issued at face value, the bonds are issued at 103.
   1. Prepare the journal entry to record the bond issue.
   2. How will the bond liability be presented on the balance sheet immediately after they are issued?
4. Now assume the bonds are instead issued at 98.
   1. Prepare the journal entry to record the bond issue.
   2. How will the bond liability be presented on the balance sheet immediately after they are issued?
   3. 
      

Answer rating: 100% (QA)

1 a Account Titles Debit Credit Cash 309000 Bonds Payable 300000 Premium on ... View the full answer