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On January 1 2021, Luxe Corporation issues $200,000 of 9%, 10-year bonds, with interest payable semiannually on June 30 and December 31 each year. The
On January 1 2021, Luxe Corporation issues $200,000 of 9%, 10-year bonds, with interest payable semiannually on June 30 and December 31 each year. The market interest rate is 10%. The issue price of the bonds is $187.538. What journal entry should the corporation make to record the bond issue on January 1, 2021? Credit Account Interest Expense Cash Bonds Payable Debit 12,462 187,538 200,000 Credit Account Cash Discount on Bonds Payable Bonds Payable Debit 187,538 12,462 200,000 Credit Account Bonds Payable Cash Discount on Bonds Payable Debit 200,000 187,538 12,462 Account Cash Bonds Payable Credit Debit 200,000 200.000
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