Question
On June 1, 2016 Alpha Corporation issued $300,000 of 9%, 5-year bonds.The bonds which were issued at 97, pay interest on January 1 and June
On June 1, 2016 Alpha Corporation issued $300,000 of 9%, 5-year bonds.The bonds which were issued at 97, pay interest on January 1 and June 1.Use this information to prepare the General Journal entry (without explanation) to record the June 1, 2016 bond issue.
The answer I got was
Date account Debit Credit
6/1/16 Cash $291,000
Discount on Bonds Payable $9,000
Bonds Payable $300,000
Is this correct?
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Managerial Accounting
Authors: Kurt Heisinger, Joe Ben Hoyle
2nd edition
1453375723, 1453375724, 978-1453375716
