Exercise 15-06 a1-b2 (Part Level Submission) Blossom Company issued $660,000 of 5-year, 6% bonds at 99 on January 1, 2020. The bonds pay interest annually.

(a1)

	Your answer is correct.

Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

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Attempts: 1 of 5 used

(a2)

	Your answer is correct.

Compute the total cost of borrowing for these bonds.

Total cost of borrowing

$

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Attempts: 1 of 5 used

(b1)

	Your answer is correct.

Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Click if you would like to Show Work for this question:

Open Show Work

SHOW LIST OF ACCOUNTS

SHOW SOLUTION

LINK TO TEXT

Attempts: 1 of 5 used

(b2)

	Your answer is incorrect. Try again.

Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104.

Total cost of borrowing

$