Carla Vista Co. sold $6,450,000, 10%, 15-year bonds on January 1, 2017. The bond
ID: 2570649 • Letter: C
Question
Carla Vista Co. sold $6,450,000, 10%, 15-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on December 31. The bonds were sold at 99.
Date
Account Titles and Explanation
Debit
Credit
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Date
Account Titles and Explanation
Debit
Credit
Carla Vista Co. sold $6,450,000, 10%, 15-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on December 31. The bonds were sold at 99.
Explanation / Answer
SOLUTION
(A)
(B)
(C)
Date Accounts title and Explanations Debit ($) Credit ($) Jan.1 Cash (6,450,000 *99%) 6,385,500 Discount on bonds payable 64,500 Bonds payable 6,450,000 (To record issuance of bonds)