Transanomics Corp recently issued at par value 5-year bonds with a par value of $500,000, dated January 1, 2015 and bearing an interest at an annual rate of 10% payable quarterly on March 31, June 30, September 30 and December 31st. The initial journal entry made by Transanomics Corp. was:

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Business

Nicholson

21 December, 17:07

Transanomics Corp recently issued at par value 5-year bonds with a par value of $500,000, dated January 1, 2015 and bearing an interest at an annual rate of 10% payable quarterly on March 31, June 30, September 30 and December 31st. The initial journal entry made by Transanomics Corp. was:

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Stephens · Answer 1

Issued Bond was the liabilities for Transanomics Corp. It receives cash against the issuance of bonds.

Initial Journal Entry by Transanomics Corp.

Dr. Cr.

January 1, 2015

Cash $500,000

Note Payable $500,000