Your company sells 53000 of oneyear 12 bonds for an issue pr

Your company sells $53,000 of one-year, 12% bonds for an issue price of $45,500. The journal entry to record this transaction will include a credit to Bonds Payable in the amount of: O $45,500 O $51,860 O $59,360 O $53,000

Solution

  

The 4th option is correct i.e solution= $ 53,000

JOURNAL ENTRY:

Cash a/c-------------------------------Dr 45,500 $

Discount on bonds payable a/c –Dr   7,500$

      To Bonds Payable a/c----------------------------------53000 $

( Being the issue of one year ,12 % bonds at a discount)