FINANCIAL ACCOUNTING: TOOL
FINANCIAL ACCOUNTING: TOOL
9th Edition
ISBN: 9781119598305
Author: Kimmel
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 10, Problem 10.8BE
To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

To prepare: The journal entry to record sale of the bonds of Incorporation B as on March 1, 2017.

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Chapter 10 Solutions

FINANCIAL ACCOUNTING: TOOL

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