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malay corporation issued $2 million , 10yr, 6% bonds on jan 1, 2017. prepare the emtry...

malay corporation issued $2 million , 10yr, 6% bonds on jan 1, 2017.
prepare the emtry to record the sale of these bonds, assuming they were issued at 98, 103, 100?
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Answer #1

a) Journal entry

Date account and explanation Debit Credit
Jan 1 Cash (2000000*.98) 1960000
Discount on bonds payable 40000
Bonds payable 2000000
(To record bond issue)

b) Journal entry

Date account and explanation Debit Credit
Jan 1 Cash (2000000*1.03) 2060000
Premium on bonds payable 60000
Bonds payable 2000000
(To record bond issue)

c) Journal entry

Date account and explanation Debit Credit
Jan 1 Cash 2000000
Bonds payable 2000000
(To record bond issue)
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