question archive On 1/1/20X1, Illini issues 10% bonds dated 1/1/20X1, with a face amount of $60,000
On 1/1/20X1, Illini issues 10% bonds dated 1/1/20X1, with a face amount of $60,000
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On 1/1/20X1, Illini issues 10% bonds dated 1/1/20X1, with a face amount of $60,000. The bonds mature on 12/31/20X4 (4 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31. Illini incurs a total of $2,000 debt issuance costs. After its third interest payment on 6/30/20X2, Illini buys back the bonds on the market for $61,000.
Please refer to the instructions and the table in this question. Enter the correct journal entry for part [A].
DateAccount Name (Debit)Account Name (Credit)DebitCredit1/1/20X1Cash[A]
Option 1
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