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MaRussiya [10]
2 years ago
6

Bond Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 103. The journal entry to record the issuance

will show a
Business
1 answer:
Darya [45]2 years ago
5 0

Answer and Explanation:

The journal entry to record the issuance of the bond is as follows:

Cash Dr (5,000 × 103) $515,000

Discount on bond payable Dr $4,485,000

        To Bond payable (5,000 × $1,000)  $5,000,000

(Being the issuance of the bond is recorded)

Here cash and discount on bond payable is debited and credited the bond payable

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