question archive Four thousand bonds with a face value of $1,000 each, are sold at 102
Subject:AccountingPrice:3.87 Bought7
Four thousand bonds with a face value of $1,000 each, are sold at 102. The entry to record the issuance is
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Answer:
Cash (4000*1000*102%) Dr. 4080000
Premium on Bonds Payable (4000*1000*102%) Cr. 80000
Bonds Payable (4000*1000) Cr. 4000000
Option B is the correct answer.