On January 31, 2020, Combinor Company issued $900,000 face amount of 9%, 10-year bonds due January 31, 2030, with a present value of $965,423 at a 8% yield, to Combinee Company for its net assets. The journal entry :for the merger includes .a Credit to premium on bonds payable .$65,423 .b Debit to investment in combinee net .assets $900,000 .C Credit to discount on bonds payable .$65,423 .d Debit to investment in combinee net .assets $ 834,577

On January 31, 2020, Combinor Company issued $900,000 face amount of 9%, 10-year bonds due January 31, 2030, with a present value of $965,423 at a 8% yield, to Combinee Company for its net assets. The journal entry :for the merger includes .a Credit to premium on bonds payable .$65,423 .b Debit to investment in combinee net .assets $900,000 .C Credit to discount on bonds payable .$65,423 .d Debit to investment in combinee net .assets $ 834,577

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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