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Open Assignment ER Start Time: 12:30 PM / Remaining: 10 min. CALCULATOR PRINTER V Vaughn Company issued 261,000 of 5-year, 9% bonds at 95 on
Open Assignment ER Start Time: 12:30 PM / Remaining: 10 min. CALCULATOR PRINTER V Vaughn Company issued 261,000 of 5-year, 9% bonds at 95 on January 1, 2017. The bonds pay interest annually. RESOURCES "e essment (1) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is manually.) Account Titles and Explanation Debit Credit Cash 261,000 261,000 Bonds Payable 3 (2) Compute the total cost of borrowing for these bonds. Total cost of borrowing 117350 10 11 12 13 14 15 16 17 18 m 19 in 20 an 21 on 22 (1) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 102. (Credit account titles are au when amount is entered. Do not indent manually.) Credit Debit Account Titles and Explanation 130500 Interest Expense 130500 Interest Payable (2) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 102. core Total cost of borrowing 24
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