Chrome File Edit View History Bookmarks People Window Help . e New Corp. Issu x-

Question

Chrome File Edit View History Bookmarks People Window Help . e New Corp. Issu x-K cccs Login x e Unit 2 Discussi x E ACC122 M2C15x M WileyPLUS Cash Payment i X ? × Hello there are × ? d ? Secure https://edugenwileyplus.com/edugen/lti/main.un. pring2018 Weygandt, Accounting Principles, 12e PRINTER VERSION BACK ASSIGNMENT RESOURCES pptx Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) ACC122 Account Titles and Explanation Debit Credit Exercise 15-3 ercise 15 entation2.ppt ble Review Resu Share L0 LINK TO TEXT Styles Pane Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 105. Total cost of borrowing Click if you would like to Show Work for this question: SHOW LIST OF ACCOUNTS LINK TO TEXT bond accounting.docx Show AlI

Explanation / Answer

1) JOURNAL ENTRY : Date Account Tittle & Explanation Debit Credit Cash $475,000 Discount on bonds payable $25,000 9% Bonds payable $500,000 (To record issue of bonds payable @ $95) Cost of Borrowing = Cash Apyment - Cash Receipt = ( Principal + Interest)- Cash Receipt =(500000+ (500000*9%*5)- 475000)=$250000 JOURNAL ENTRY : Date Account Tittle & Explanation Debit Credit Cash (500000*105/100) $525,000 Bonds payable $500,000 Premium on bonds payable $25,000 (To record issue of bonds payable)

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