Homework Sourseugenwileypluscomedugenltimainuni Help I INTERACTIVE TUTORTAL
ugen.wileyplus.com/edugen/lti/main.uni Help I INTERACTIVE TUTORTAL
Solution
Answer:
Journal entry for issue of bond
Description
Debit $
Credit $
Cash
256410
Discount on Bonds payable
2590
Bonds payable
259000
(To record the issue of bond)
Explanations to the answer:
1
Cash receipt on issue of bond
=Face value of bonds x Issue price
=259,000 x 99%
=256410
2
Discount on Bonds payable
=Face value of bonds x Discount rate
=259,000 x 1%
=2590
| Description | Debit $ | Credit $ |
| Cash | 256410 | |
| Discount on Bonds payable | 2590 | |
| Bonds payable | 259000 | |
| (To record the issue of bond) |
