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On January 1, Parson Freight Company issues 7.5%,10-year bonds with a par value of $3,100,000. The bonds pay interest semiannually. The market rate of interest
On January 1, Parson Freight Company issues 7.5%,10-year bonds with a par value of $3,100,000. The bonds pay interest semiannually. The market rate of interest is 8.5% and the bond selling price was $2,889,352. The bond issuance should be recorded as: Debit Cosh $3,100,000 : credit Bonds Payable $3,100,000 Debit Cosh \$2,889,352; crecit Bonds Payable \$2,889,352. Debit Cash $3,100,000; credit Bonds Payable $2,889,352; credit Discount on Bonds Poyable $210,648. Debit Cosh $2,889,352; debit Discount on Bonds Poyoble $210,648; credit Bonds Payable $3,100,000 Debit Cosh \$2,889,352; debit Interest Expense $210,648; credit Bonds Poyable $3,100,000
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