A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price for this bond is recorded as a: Multiple Choice Debit to Discount on Bonds Payable. Credit to Interest Income. Credit to Discount on Bonds Payable. Debit to Premium on Bonds Payable. Credit to Premium on Bonds Payable.

A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price for this bond is recorded as a: Multiple Choice Debit to Discount on Bonds Payable. Credit to Interest Income. Credit to Discount on Bonds Payable. Debit to Premium on Bonds Payable. Credit to Premium on Bonds Payable.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal...

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Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received $105,000. What is the journal entry to record the sale of the bonds?
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