General Electric $($GE$)7\%$ bonds, maturing

Boeing $7\%$ bonds, maturing September $24,2037,$ were issued at $98,40.$

$($a$)$

Your answer is correct.

Were GE and Boeing bonds issued at a premium or a discount?

The General Electric bonds were issued at a premium and the Boeing bonds were issued at a

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$($c$)$

Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $$750,000$ of bonds in total. $($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$1$

Cash

Premium on Bonds Payable

Bonds Payable

$2$

Cash

Discount on Bonds Payable

Bonds Payable