Joseph Company had underwriters prepare a bond issue for $100,000 9%, ten-year bonds dated January 1, 2014.
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Joseph Company had underwriters prepare a bond issue for $100,000 9%, ten-year bonds dated January 1, 2014. The bonds were issued on March 1, 2014 at 102 plus accrued interest on. Expenses connected with the issue totaled $5,000 and were deducted in arriving at the net proceeds. Joseph amortizes premiums and discounts using the straight-line method. The entry to record the issue would include
a) A debit to Bonds Payable for $100,000.
b) A debit to Interest Expense for $1,500.
c) A credit to Interest Expense for $1,500
d) A credit to Bonds Payable for $102,000.
Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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