Ch. 10 Homework instructions I h Question 1 (of 3) Save & Exit Subm value 33.33
ID: 2510615 • Letter: C
Question
Ch. 10 Homework instructions I h Question 1 (of 3) Save & Exit Subm value 33.33 points Prepare the journal entnes for the issuance of the bonds. Assume the bonds are issued for cash on January 1. 2016. Enviro Company issues 8%, 10-year bonds with a par value or S200.000 and semiannual nterest payments on the ssue dae the annual market rate for these bonds is 10%, which implies a selling price of 87 View transaction list Journal entry worksheet Record the issue of bonds with a par value of $200,000. Note: Enter debits before credits. Date General Journal Credit Jan 01, 2016 Cash 200,000 Bonds payable 200,000 Record entry Clear entry View general jourmal DXLLExplanation / Answer
No Date General Journal Debit Credit 1 Jan 01, 2016 Cash ($200000 x 87.50%) 175000 Discount on bonds payable 25000 Bonds payable 200000 (To record issuance of bonds)