On October 1, 2020 Concord Corporation issued 5%, 10-year bonds with a face value of $7930000 at 103. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of $198250 to Interest Payable. credit of $237900 to Premium on Bonds Payable. credit of $7692100 to Bonds Payable. debit of $237900 to Discount on Bonds Payable.
On October 1, 2020 Concord Corporation issued 5%, 10-year bonds with a face value of $7930000 at 103. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of $198250 to Interest Payable. credit of $237900 to Premium on Bonds Payable. credit of $7692100 to Bonds Payable. debit of $237900 to Discount on Bonds Payable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 1, 2020 Concord Corporation issued 5%, 10-year bonds with a face value of $7930000 at 103. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.
The entry to record the issuance of the bonds would include a
The entry to record the issuance of the bonds would include a
credit of $198250 to Interest Payable.
credit of $237900 to Premium on Bonds Payable.
credit of $7692100 to Bonds Payable.
debit of $237900 to Discount on Bonds Payable.
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