Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 18 on january 1, 2021, modesto company is

Question 18 On January 1, 2021, Modesto Company issued bonds with a face value of...

60.1K

Verified Solution

Question

Accounting

Question 18 On January 1, 2021, Modesto Company issued bonds with a face value of $100,000. The bonds carry a stated interest of 10% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 110. a. (Dr.) Cash 110,000 (Cr.) Bond Payable 100,000 (Cr.) Bond Discount 10,000 b. (Dr.) Cash 90,000 (Dr.) Bond Premium 10,000 (Cr.) Bond Payable 100,000 c. (Dr.) Cash 110,000 (Cr.) Bond Payable 100,000 (Cr.) Bond Premium 10,000 d. (Dr.) Cash 90,000 (Dr.) Bond Discount 10,000 (Cr.) Bond Payable 100,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The stock of Sedly Inc. is expected to paythe following dividends. Dividends: Year 1: $2.25 year...

Finance
Q

Distinguish between stimulus, sensation, transduction, transmission and perception stimulus sensation transduction transmission perception

Medical Sciences
Q

Discuss to what extent the concepts of French Sensationalism and Positivism can be related to concepts...

Psychology
Q

Discuss the implications of the following statement: “…We came to believe that quality of care in...

General Management
Q

The vice president of operations at Busch Gardens knows that 70 percent of the patrons...

Basic Math
Q

What management accounting related considerations would be important if the company decided to...

Accounting
Q

The inventory costing method that reports the most current prices in ending inventory is a....

Accounting
Q

Required: 1. Which alternative is more cost effective and by how much? NOTE: Do NOT...

Accounting
Q

The calculation for the credit for the elderly or disabled requires that the appropriate base...

Accounting
Q

\table[[Merck & Co., Inc. Stockholders' Equity ($ millions),Year,Year],[Common stock, $0.50 par value,,],[Authorized-6,500,000,000 shares,,],[Issued-3,688,014,021 shares in...

Accounting
Q

Comment: Only Need answer 2a "Total contribution margin on lost sales" ...

Accounting
Q

Oriention 4 Not checked Take me to the text Marked out of 8.50 In the...

Finance