Question

Prepare the journal entry to issue $100,000 bonds which sold for $94,000.(b)prepare the journal entry to issue $100,000 bonds which sold for $104,000.

Answer 1

The journal entry to issue $100,000 bonds which sold for $94,000.

Cash (Dr)                                                             94,000

Discount on bonds payable (Dr)                        6,000

           Bonds payable(Cr)                                                                1,00,000

The journal entry to issue $100,000 bonds which sold for $104,000.

Cash (Dr)                                                              1,04,000

         Premium on bonds payable (Cr)                                            4,000

         Bonds Payable (Cr)                                                                   1,00,000

What is bond?

In a bond, the issuer owes the bearer a debt and is required to return the principle and interest over a specified time period until the bond matures. Bonds are a form of financial asset. Usually, interest must be paid on a regular basis.

What is issue of bonds?

One way for businesses to raise capital is through issuing bonds. An investor and a company borrow money from one another through bonds. The investor consents to provide the company with a particular sum of money over a specific time period. Periodic interest payments are given to the investor in return.

Learn more about Bonds: brainly.com/question/17405470

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