Five thousand bonds with a face value of $2000 each, are sold at 106. The entry to record the issuance is 1- Cash 10600000 Premium on Bonds Payable 600000 Bonds Payable 10000000 2-1 Cash 10000000 Premium on Bonds Payable 600000 Bonds Payable 10600000 3- Cash 10600000 Bonds Payable

Five thousand bonds with a face value of $2000 each, are sold at 106. The entry to record the issuance is 1- Cash 10600000 Premium on Bonds Payable 600000 Bonds Payable 10000000 2-1 Cash 10000000 Premium on Bonds Payable 600000 Bonds Payable 10600000 3- Cash 10600000 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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Question

Five thousand bonds with a face value of $2000 each, are sold at 106. The entry to record the issuance is

1- Cash	10600000
Premium on Bonds Payable		600000
Bonds Payable		10000000

2-1 Cash	10000000
Premium on Bonds Payable	600000
Bonds Payable		10600000


3- Cash	10600000
Bonds Payable		10600000

4- Cash	10600000
Discount on Bonds Payable		600000
Bonds Payable		10000000

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