Enviro Company issues $8\%,10-$year bonds with a par value of $$280,000$ and semiannual interest payments. On the issue date, the annual market rate for these bonds is $10\%,$ which implies a selling price of $\frac{871}{2}.$

Prepare the journal entry for the issuance of the bonds for cash on January $1.$

Journal entry worksheet

$1$

Record the issue of bonds with a par value of $$280,000.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,$Cash,,$192,500,],[,$Discount on bonds payable,.,$27,500,],[,$Bonds payable,,,$220,000],[,,,,],[,,,,],[,,,,]]$ The answers added are incorrect