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

Question:

1. 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.

2. Prater Corporation issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $390,000, 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
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...

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