Exercise $9-66$

Issuing at Par, a Premium, or a Discount

Dash Enterprises is planning to issue $1,500$ bonds, each having a face amount of $$1,000.$

Required:

Prepare the journal entry to record the sale of the bonds at par.

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Record issuance of bonds at par

Prepare the journal entry to record the sale of the bonds at a premium of $$19,000.$

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Record issuance of bonds at premium

Prepare the journal entry to record the sale of the bonds at a discount of $$32,000.$

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Record issuance of bonds at discount

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Record issuance of bonds at discount

Conceptual Connection: Assuming the stated rate is identical for the previous three scenarios, in which scenario is the market rate of interest $($yield$)$ highest?

The bonds sell at $$