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Prepare the journal entry for issuing a bond when it sells at face value, at a premium and at a discount

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 6PEA

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Question

Prepare the journal entry for issuing a bond when it sells at face value, at a premium and at a discount

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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Bonds Issued at par i.e sells at face value

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Bonds Issued at discount i.e sells at discount to face value or par value

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Bonds Issued at premium i.e sells at premium to face value or par value

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