Answer:
Cash 8,308,869
Premium on Bonds Payable 308,869
Bonds Payable 8,000,000
PE 14-4B Issuing bonds at a premium
On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays semiannual interest of $440,000 ($8,000,000 × 11% × ½), receiving cash of $8,308,869. Journalize the bond issuance.
Answer:
Cash 8,308,869
Premium on Bonds Payable 308,869
Bonds Payable 8,000,000
Answer:
Cash 8,308,869
Premium on Bonds Payable 308,869
Bonds Payable 8,000,000