Homework Answers
Par value of bonds = $400,000
Cash receipts from issue of bonds = 415,163
Premium on bonds payable = Cash receipts from issue of bonds - Par value of bonds
= 415,163 - 400,000
= $15,163
Journal
|
Date |
Account Title and Explanation |
Debit |
Credit |
| January 1, 2020 | Cash | 415,163 | |
| Bonds payable | 400,000 | ||
| Premium on bonds payable | 15,163 | ||
| (To record Bond issue) |
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