1. A corporation issues $500,000 of 20-year, 7% bonds dated January 1 at 95. The journal entry...

50.1K

Verified Solution

Question

Accounting

1.
A corporation issues $500,000 of 20-year, 7% bonds dated January1 at 95. The journal entry to record the issuance will include
Group of answer choices
a credit to Bonds Payable for $500,000.
a credit to Premiums on Bonds Payable for $25,000.
a debit to Interest Expense for $25,000.
a credit to Discount on Bonds Payable for $25,000.
a debit to Cash for $500,000.
2.
If the market interest rate for a bond is higher than the statedinterest rate, the bond will sell at
Group of answer choices
the conversion rate
a premium.
the termination rate
a discount.
par.

Answer & Explanation Solved by verified expert

3.7 Ratings (300 Votes)

1 A corporation issues 500000 of 20year 7 bonds dated January 1 at 95 The journal entry to record the issuance will include a debit to Cash for 500000 and a credit to Bonds Payable for 500000 The journal entry for the above transaction will be Cash ac dr 500000 To bonds Payable 500000 2 If the market interest See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member