Journal entry worksheet 2 Record the issuance of bonds for $242,426 with a face

Question

Journal entry worksheet 2 Record the issuance of bonds for $242,426 with a face value of $280,000. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Cash 242,426 Discount on Bonds Payable 37,574 Bonds Payable 280,000 Required" in the first account field. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the interest payment on December 31 Note: Enter debits before credits. Date General Journal DebitCredit December 31 Interest Expense on Bonds Payable

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Dr Cr Jan 01 Cash Dr         242,426.00 Discount on Bonds Payable            37,574.00 To Bonds Payable         280,000.00 Dec 31 Interest Expense Dr            20,557.40 To Discount on Bonds Payable              3,757.40 To Cash = 280,000*6%            16,800.00 Note: Face Value         280,000.00 Issue price           242,426.00 Discount on issue            37,574.00 Discount amortised per year = 37574 / 10              3,757.40

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