Whitmore Company issued $404,500 of 5-year, 5% bonds at 98 on January 1, 2017. The bonds pay interest annually.

Prepare the journal entry to record the issuance of the bond

Account Titles and Explanation

Debit

Credit

Compute the total cost of borrowing for these bonds.

Total cost of borrowing

Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104.

Account Titles and Explanation

Debit

Credit Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104. Total cost of borrowing