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Bond Issuance Journal Entry

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

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Solution Preview

The excel is attached.

A) The journal entry will be:

Debit Cash - ...

Solution Summary

The solution prepares journal entry for bond issue at discount and at premium.

$2.19