On the first day of the current fiscal year, $200,000 of 10-year, 7% bonds, with interest payable annually, were sold for $212,500. What account would be listed in the description column (2) as the credit for the $200,000 in the journal entry to record this transaction?

On the first day of the current fiscal year, $200,000 of 10-year, 7% bonds, with interest payable annually, were sold for $212,500. What account would be listed in the description column (2) as the credit for the $200,000 in the journal entry to record this transaction?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...

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On the first day of the current fiscal year, $200,000 of 10-year, 7% bonds, with interest payable annually, were sold for $212,500. What account would be listed in the
description column (2) as the credit for the $200,000 in the journal entry to record this transaction?

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