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rks People Window Help MyEPCC connect gin Secure https://newconnect.mheducation.com/flow/connect.htm raw-Hinconnect G Google Apple ·iCloud D Yahoo D Bing D wikipedia D Facebook D Twitter DLin kedin eThe weather Chanel Dw at inal - Good Luck! Help Save & Exit S On January 1, a company issues bonds dated January 1 with a par value of $470,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June30 and December 31, The market rate is 12% and the bonds are sold for $452,707. The journal entry to record the issuance of the bond is: Multiple Choice Debit Cash $470,000; credit Discount on Bonds Payable $17,293; credit Bonds Payable $452,707 Debit Cash $452707; credit Bonds Payable $452.707 Debit Cash $452,707; debit Premium on Bonds Payable $17.293; credit Bonds Payable $470.000.Explanation / Answer
Answer:E Debit cash 452707, Debit discount on bonds payable 17293, Credit bapnd payable 470,000
When bond is issued at a price less than its par value it is said to be issues at discount and when issued at value greater than its par value it is said to be issued at premium.
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