Question

Brief Exercise 10-08 Skysong, Inc. issues $256,000, 10-year, 7% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answers

• Exercise 10 – 08

Accounts title	Debit	Credit
Cash $ 256000 x 98/100	$250,880
Discount on Bonds Payable	$5,120
Bonds Payable		$256,000

• [a], [b] and [c]

Date	Accounts title	Debit	Credit
01-Jan-22	Cash ($1000 x 2700)	$2,700,000
	Bonds Payable		$2,700,000
	(to record issuance)
31-Dec-22	Interest Expense ($ 2700000 x 6%)	$162,000
	Interest Payable		$162,000
	(to record accrual)
01-Jan-23	Interest Payable	$162,000
	Cash		$162,000
	(to record payment)