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Sealy Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2021, at 97. The journal entry to record the issue will show a
Sealy Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2021, at 97. The journal entry to record the issue will show a O a. credit to Discount on Bonds Payable for $30,000. b. credit to Bonds Payable for $1,000,000. c. debit to Cash for $970,000. d. debit to Cash for $1,000,000. On January 1, 2021, $1,000,000, 5-year, 5% bonds, were issued for $957,345. The interest rate in effect when the bonds were issued was 6%. Interest is paid semi- annually on January 1 and July 1. What would be the amortized cost of the bonds on January 1, 2022? a. $1,000,000 b. $964,897 10. C. $961,065 d. $957,345
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