
(a)
Rules of debit and credit:
“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.
Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.
Bonds: Bond is a financial instrument that provides the long term debt for the company and company pays the interest to its bondholders, usually at a fixed rate and time intervals.
To record: The journal entry for sale of bonds on discount.
(b)
To record: The journal entry for sale of bonds on premium.

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Chapter 15 Solutions
Accounting Principles - Standalone book
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