Question

The Amazing Widget Company issues $538,000 of 7%, 10-year bonds at 108 on March 31, 2017....

Question

Question

The Amazing Widget Company issues $538,000 of 7%, 10-year bonds at 108 on March 31, 2017. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. The journal entry to record the issuance includes a ________.

Sumit · Accepted Answer

Debit to Cash for an Amount of $581,040. 
This is because the bonds are issued at $108 per bond. Hence 5380 bonds at the rate of $108 each is total cash receipt of $581,040.

Question The Amazing Widget Company issues $538,000 of 7%, 10-year bonds at 108 on March 31, 2017. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment