Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 10 - Reporting and Analyzing Liabilities - Brief Exercises - Page 543: BE10-12


Step1: Jan. 1 Cash - 2,970,00 dollars (Debit) Discount on bonds payable - 30,000 dollars (Debit) Bonds payable - 3,000,000 dollars (Credit) Step2: Jan.1 Bonds interest expense - 183,000 dollars (Debit) Discount on bonds payable - 3,000 dollars (Credit) Bonds interest payable - 180,000 dollars (Credit)

Work Step by Step

Step1: To record the sale of bonds at a discount. Step2: To record accrued bond interest and amortization of bonds discount.
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