On July 1, 2019, Jones Corp. issued $40,000 face value, 5-year, 8% coupon bonds paying...
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On July 1, 2019, Jones Corp. issued $40,000 face value, 5-year, 8% coupon bonds paying interest semiannually on June 30th and Dec 31st. The market (yield) rate on the date of issuance was 10%. The cash received at the issuance of the bonds was $35,000. What journal entry was recorded when Jones Corp. made its first interest payment? Dr. Interest Exp $1,750; Dr. Discount B/P $250; Cr. Cash $1,500 Dr. Interest Exp$1,750;Cr. Discount B/P $150;Cr. Cash $1,600 Dr. Interest Exp $1,750; Cr. Premium B/P $150; Cr. Cash $1,600 Dr. Interest Exp $1,750; Dr. Premium B/P $250; Cr. Cash $1,500 Question 28 (1 point) On July 1, 2019, Jones Corp. issued $40,000 face value, 5 -year, 8% coupon bonds paying interest semiannually on June 30th and Dee 31st. The market (yield) rate on the date of issuance was 10%. The cash received at the issuance of the bonds was $35,000. What journal entry was reeorded when Jones Corp. retired the bonds? Dr. Bonds Payable $40k; Cr. Discount Bonds Payable $5k;Cr. Cash $35k Dr. Cash $40k;Cr. Bonds Payable $40k Dr. Bonds Payable $40k;Cr. Cash $40k Dr. Premium on Bonds Payable $5k; Dr. Bonds Payable $35k; Credit Cash $40k
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