Ask Question
10 December, 20:21

Carla Vista Co. issued $590,000, 10-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 enter an account title to record the sale of these bonds on January 1, 2017 enter a debit amount enter a credit amount enter an account title to record the sale of these bonds on January 1, 2017 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Suppose the remaining Premium on Bonds Payable was $3,540 on December 31, 2020.

Show the balance sheet presentation on this date. CARLA VISTA CO. Balance Sheet (Partial) choose the accounting period select an opening subsection name enter a balance sheet item $enter a dollar amount select between addition and deduction: enter a balance sheet item enter a dollar amount $enter a total of the two previous amounts

+2
Answers (1)
  1. 10 December, 22:43
    0
    cash 595,900 debit

    bonds payable 590,000 credit

    premium on bonds 5,900 credit

    Explanation:

    We have to record the issuance of the bonds:

    cash proceeds:

    face value x quote:

    590,000 x 101/100 = 595,900

    face value (590,000)

    premium 5,900

    There is a premium as we are receiving more than we are going to pay at maturity.

    We will debit the cash proceeds form the bond

    and credit the bonds and premium
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Carla Vista Co. issued $590,000, 10-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on January 1, 2017. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers