Question

Proceeds from the sale of bonds represent a.the amount of the debit to Cash in the journal entry recording the sale. b.the face amount of the bond times the quoted sale percentage. c.the amount compared to the book (cost) value of the bonds to determine the gain or loss on the sale. d.All of these choices are correct.

Answer 1

Answer:

d.All of these choices are correct.

Explanation:

a) when we sale the bonds cash will be debited for the journal entry.

b) the value will be the face value times quoted value

face value of $1,000,000 quoted at 98

example $1,000,000 x 98/100 = $980,000

c) we compare the face value against the proceeds to determinate the gain or loss