question archive BJ Corporation issues 500, 5-year, 5%, $2,000 bonds dated January 1, 2013, at 104
BJ Corporation issues 500, 5-year, 5%, $2,000 bonds dated January 1, 2013, at 104
Subject:BusinessPrice:3.87 Bought7
BJ Corporation issues 500, 5-year, 5%, $2,000 bonds dated January 1, 2013, at 104. The journal entry to record the issuance is:
| A) Cash $1,000,000 Premium on Bonds $40,000 Bonds Payable $1,040,000 |
|
| B) Cash $1,040,000 Premium on Bonds $40,000 Bonds Payable $1,000,000 |
|
| C) Cash $1,400,000 Bond Payable $1,400,000 |
|
| D) Cash $1,000,000 Bond Payable $1,000,000 |
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
Option B is the correct answer.
Cash (500*2000*104%) Dr. 1040000
Premium on Bonds Payable (500*2000*40%) Cr. 40000
Bonds Payable (5000*2000) Cr. 1000000
