On January 1, 2010, Kentwood Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1 and July 1.
a. Prepare the journal entry for the issuance assuming the bonds are issued at 97.
b. Prepare the journal entry for the issuance assuming the bonds are issued at 102© BrainMass Inc. brainmass.com March 21, 2019, 8:52 pm ad1c9bdddf
The excel is attached.
A) The journal entry will be:
Debit Cash - ...
The solution prepares journal entry for bond issue at discount and at premium.