4500 bonds with a face value of $1000 each, are sold at 101. The entry to record the issuance is Cash Premium on Bonds Payable Bonds Payable 4545000 45000 4500000 Cash 4545000 Bonds Payable 4545000 Cash Premium on Bonds Payable Bonds Payable Cash Discount on Bonds Payable Bonds Payable 4500000 45000 4545000 4545000 45000 4500000

4500 bonds with a face value of $1000 each, are sold at 101. The entry to record the issuance is Cash Premium on Bonds Payable Bonds Payable 4545000 45000 4500000 Cash 4545000 Bonds Payable 4545000 Cash Premium on Bonds Payable Bonds Payable Cash Discount on Bonds Payable Bonds Payable 4500000 45000 4545000 4545000 45000 4500000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 16MC: Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal...

See similar textbooks

Similar questions

Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal entry to record this transaction includes ________. A. a credit to Bonds Payable for $102,500 B. a credit to cash for $102,500 C. a debit to cash for $100,000 D. a credit to Premium on Bonds Payable for $2,500
4600 thousand bonds with a face value of $1000 each, are sold at 104. The entry to record the issuance is Cash Premium on Bonds Payable Bonds Payable Cash 4784000 4600000 Premium on Bonds Payable 184000 Bonds Payable Cash Bonds Payable Cash Discount on Bonds Payable Bonds Payable 184000 4600000 4784000 4784000 4784000 4784000 184000 4600000
6400 bonds with a face value of $1000 each, are sold at 105. The entry to record the issuance is Cash Discount on Bonds Payable Bonds Payable Cash Premium on Bonds Payable Bonds Payable Cash Bonds Payable Cash Premium on Bonds Payable Bonds Payable 6720000 6720000 6720000 6400000 320000 320000 6400000 320000 6400000 6720000 6720000
why is the premium on bonds payable included in the journal entry?
Five thousand bonds with a face value of $2000 each, are sold at 112. The entry to record the issuance is Cash 11200000 Bonds Payable 11200000 Cash 11200000 Discount on Bonds Payable 1200000 Bonds Payable 10000000 Cash 11200000 Premium on Bonds Payable 1200000 Bonds Payable 10000000 Cash 10000000 Premium on Bonds Payable 1200000 Bonds Payable 11200000
If 70 $1000 bonds with a carrying value of $84000 are redeemed for $79000, the journal entry to record the transaction is Bonds Payable Premium on Bonds Payable Cash Bonds Payable Cash Gain on Bond Redemption Discount on Bonds Payable 14000 Bonds Payable Cash 70000 Bonds Payable 14000 84000 84000 70000 84000 79000 19000 84000 C M Q M oʻ
Five thousand bonds with a face value of $1000 each, are sold at 102. The entry to record the issuance is Cash 5100000 Discount on Bonds Payable 100000 Bonds Payable 5000000 Cash 5100000 Bonds Payable 5100000 Cash 5000000 Premium on Bonds Payable 100000 Bonds Payable 5100000 Cash 5100000 Premium on Bonds Payable 100000 Bonds Payable 5000000
Five thousand bonds with a face value of $1000 each, are sold at 98. The entry to record the issuance is Cash Bonds Payable 4900000 4900000 Cash 4900000 Premium on Bonds Payable 100000 Bonds Payable 5000000 Cash 5000000 Discount on Bonds Payable Bonds Payable 100000 4900000 Cash 4900000 Discount on Bonds Payable 100000 Bonds Payable 5000000
Five thousand bonds with a face value of $2000 each, are sold at 89. The entry to record the issuance is Cash 8900000 Premium on Bonds Payable 1100000 Bonds Payable 10000000 Cash 8900000 Bonds Payable 8900000 Cash 10000000 Discount on Bonds Payable 1100000 Bonds Payable 8900000 Cash 8900000 Discount on Bonds Payable 1100000 Bonds Payable 10000000
Five thousand bonds with a face value of $2000 each, are sold at 106. The entry to record the issuance is 1- Cash 10600000 Premium on Bonds Payable 600000 Bonds Payable 10000000 2-1 Cash 10000000 Premium on Bonds Payable 600000 Bonds Payable 10600000 3- Cash 10600000 Bonds Payable 10600000 4- Cash 10600000 Discount on Bonds Payable 600000 Bonds Payable 10000000
On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance of the bonds will include O a credit to Bonds Payable for $104081500. a credit to Interest Expense for $3031500. O a credit to Premium on Bonds Payable for $3031500. O a debit to Cash for $101050000.
Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If the issuing company redeems the bonds at 98, what is the amount of gain or loss on redemption?