MC.14-76 Exhibit 14-5 Joseph Company had underwriters prepare a bond issue for $100,000 9%, ten-year bonds dated January 1, 2014 The bonds were issued on
MC.14-76 Exhibit 14-5 Joseph Company had underwriters prepare a bond issue for $100,000 9%, ten-year bonds dated January 1, 2014 The bonds were issued on March 1, 2014 at 102 plus accrued interest on. Expenses connected with the issue totaled $5,000 and were deducted in arriving at the net proceeds. Joseph amortizes premiums and discounts using the straight-line method. The entry to record the issue would include
a) a debit to Bonds Payable for $100,000.
b) a debit to Interest Expense for $1,500.
c) a credit to Interest Expense for $1,500
d) a credit to Bonds Payable for $102,000.
Can I please see the entire entry to issue this bond to better understand this problem. I need to look at the work, thank you!
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