Question
No Game Corp. issued $6000 in principle of 4.625% 5-year junior notes. Investors paid par to purchase the bonds and $300 issuance costs were paid
No Game Corp. issued $6000 in principle of 4.625% 5-year junior notes. Investors paid par to purchase the bonds and $300 issuance costs were paid directly from the proceeds of the bond sale. What is the journal entry required to record the issuance of the debt?
Select all that apply:
Cr. Debt payable $5700
Cr. Common Stock at Par $300
Dr. Cash $5700
Dr. Cash $6000
Dr. Discount on debt payable $300
Dr. Bond issuance expense $300
Cr. Debt Payable $6000
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Notes: Since this is paid at par, a bond sale (non-amortizing debt), would the answer be
Dr. Cash $6000
Cr. Debt Payable $6000
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