Eubank Corporation issues $500,000 of bonds for $520,000. (a) Prepare the journal entry to record the issuance

Question:

Eubank Corporation issues $500,000 of bonds for $520,000.

(a) Prepare the journal entry to record the issuance of the bonds,

(b) Show how the bonds would be reported on the balance sheet at the date of issuance.

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
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...