5. Assume that the bonds are sold for $825 each. Prepare the entry to recognize the sale of the 750 bonds. Cash 675,000 X Discount on Bonds Payable 75,000 X Bonds Payable 675,000 Record issuance of bonds at discount Feedback Check My Work 5. When bonds are issued, any premium or discount is recorded in a separate valuation account 6. Assume that the bonds are sold for $1,000 each. Prepare the entry to recognize the sale of the 750 bonds. Cash 900,000 X Premium on Bonds Payable 150,000 X Bonds Payable 675,000 Record issuance of bonds at premium Exercise 9-67 (Algorithmic) Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $900. Required: 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30. 697,500 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10. $ 667,500 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par. 621,000 $ 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par. 695,250 Feedback Check My Work 1 & 2. Calculate the issue price for each bond then consider the total number of bonds to calculate total proceeds. 38 4. The par value is the same as face value