Problem 15-02A a-c (Part Level Submission)(Video) Blossom Electric sold $4,000,0
ID: 2329196 • Letter: P
Question
Problem 15-02A a-c (Part Level Submission)(Video) Blossom Electric sold $4,000,000, 10%, 10-year bonds on January 1, 2020, The bonds were dated January 1, 2020, and paid interest on January 1. The bonds were sold at 95. Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) DateAccount Titles and Explanation Debit Credit Jan. 1, 2020 Cash 3800000 Discount on Bonds Payable 200000 Bonds Payable 4000000 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWERExplanation / Answer
Journal entry:
Date account titles and explanation debit credit Jan 1,2022 Bonds payable 4000000 Loss on redemption of bonds 225000 Discount on bonds payable 185000 Cash (4000000*1.01) 4040000 (To reocrd redemption on bonds)