Answer:
Journal entry are given below
Explanation:
we get first bonds payable and common stock that is
For bonds payable
bonds payable = 2,000 × $1,000
bonds payable = $2,000,000
For common stock
common stock = 2,000 × 50 × $10
common stock = $1,000,000
For paid in capital
paid in capital = $2,000,000 - ($1,000,000 - $30,000)
paid in capital = $970,000
so Journal entry are as
Date Title Debit credit
Bond payable $2000000
discount on bond $30000
common stock $1000000
paid in capital $970000
