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
<h3>
What is bond?</h3>
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.
<h3>
What is issue of bonds?</h3>
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
#SPJ4
