Tamarisk, Inc. issues $$2\mathrm{.}60$ million, $10-$year, $8\%$ bonds at $97,$ with interest payable each January $1.$

Your answer is partially correct.

Prepare the journal entry to record the sale of these bonds on January $1,2022.($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$

Cash

Assuming instead that the above bonds sold for $104,$ prepare the journal entry to record the sale of these bonds on January $1,2022.($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$

Premium on Bonds Payable