Question
On January 1 20X1, Jude Company issues bonds with a face value of $1,000,000 in exchange for cash. On that date the market rate is
On January 1 20X1, Jude Company issues bonds with a face value of $1,000,000 in exchange for cash. On that date the market rate is 12%. The bond has a stated rate of 15% and matures in five years. Interest is paid every four months. Which of the following is part of the journal entry that Jude Company records at the date of the bond issuance.
| CREDIT to Premium on Bond Payable for $110,900 | ||
| DEBIT to Bond Payable for $1,000,000 | ||
| DEBIT to Cash for $1,000,000 | ||
| CREDIT to Premium on Bond Payable for $107,750 | ||
| CREDIT to Cash for $1,110,900 | ||
| DEBIT to Cash for $1,107,750 |
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Atomic Audit The Costs And Consequences Of US Nuclear Weapons Since 1940
Authors: Stephen I. Schwartz
1st Edition
0815777736, 978-0815777731
