Assume that the following are independent situations recently reported in the Wa

Question

Assume that the following are independent situations recently reported in the Wall Street Journal. General Electric (GE) 7% bonds, maturing January 28, 2018, were issued at 112.30. Boeing 7% bonds, maturing September 24, 2032, were issued at 98.10. 1. 2, ? (a) Your answer is correct. Were GE and Boeing bonds issued at a premium or a discount? premium discount The General Electric bonds were issued at a and the Boeing bonds were issued at a SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT VIDEO: SIMILAR EXERCISE Attempts: 3 of 3 used Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $830,000 of bonds in total. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Credit 2

Explanation / Answer

1 Cash 932090 =830000*112.3%       Bonds payable 830000       Premium on Bonds payable 102090 2 Cash 814230 =830000*98.1% Discount on Bonds payable 15770       Bonds payable 830000

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