A company issues $1,000,000 of bonds on January 1 at 97. Which journal entry is...
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Accounting
A company issues $1,000,000 of bonds on January 1 at 97. Which journal entry is needed to record issuance of the bond?
Debit Cash for $1,000,000; Credit Bonds Payable for $1,000,000
Debit Bonds Payable for $1,000,000; Credit Cash for $1,000,000
Debit Cash for $970,000; Debit Discount on Bonds Payable for $30,000; Credit Bonds Payable for $1,000,000
Debit Cash for $1,000,000; Credit Discount on Bonds Payable for $30,000; Credit Bonds Payable for $970,000
A company issues a $1.000.000 three-year note. The stated and effective rates are both 10% Which journal entry should be used to record the annual interest in Year 3?
Debit Interest Expense for $300,000; Credit Cash for $300,000
Debit Cash for $100,000; Credit Interest Expense for $100,000
Debit Cash for $300,000; Credit Interest Expense for $300,000
Debit Interest Expense for $100,000; Credit Cash for $100,000
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