Dr cash $600,000
Cr bonds payable $600,000
Dr interest expense $ 36,000.00
Cr interest payable $36,000.00
Description :
The issue of the bonds at face value implies that cash proceeds equal the face value of $600,000 which is then debited to cash account and credited to bonds payable.
The interest due on the bonds on 31st December payable on 1st January 2021 =face value ×coupon rate
face value is $600,000
coupon rate is 6%
interest=$600,000 ×6%=$36,000.00
Journal entry :
A journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company's debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit.
Learn more about journal entry :
brainly.com/question/26723616
#SPJ4
