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Garcia Company issues 9.0%, 15-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for

Garcia Company issues 9.0%, 15-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.0%, which implies a selling price of 114. Prepare the journal entry for the issuance of these bonds for cash on January 1.

Record the issue of bonds with a par value of $310,000 at a selling price of 114.

Date General Journal Debit Credit
Jan 01

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