$12$

QS $10-7($Algo$)$ Journalizing discount bond issuance LO P$2$

Enviro Company issues $10\%,10-$year bonds with a par value of $$260,000$ and semiannual interest payments. On the issue date, the annual market rate for these bonds is $12\%,$ which implies a selling price of $\frac{881}{2}.$

Prepare the journal entry for the issuance of the bonds for cash on January $1.$

Answer is not complete.

$\backslash$table$[[$No$,$Date,Gener:,,Debit,Credit$],[1,$January $01,$Cash,$0,229,410,],[,$Bonds payable,$ox,,260,000$