Question
Sandhill Co. sold $3,300,000, 7%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1.
Sandhill Co. sold $3,300,000, 7%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. (a) Your answer is correct. Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 104 and (2) 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1 1/1/22 Cash Bonds Payable Premium on Bonds Payable 2. 1/1/22 Cash 3432000 3201000 Discount on Bonds Payable 99000 Bonds Payable 3300000 132000 3300000
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