a. Smiley Corporation issues $300,000 of bonds for $315,000. (a) Prepare the journal entry to record the

Question:

a. Smiley issues $300,000 of bonds for $315,000.
(a) Prepare the journal entry to record the issuance of the bonds, and
(b) Show how the bonds would be reported on the at the date of issuance.
b. Farmland issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the earning value of the bonds was $388,000, the company redeemed the bonds at 99. Prepare the entry to record the redemption of the bonds.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
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