Ask Question
19 August, 17:37

Garcia company issues 8.00%, 15-year bonds with a par value of $290,000 and semiannual interest payments. on the issue date, the annual market rate for these bonds is 6.00%, which implies a selling price of 114 3/4.

+5
Answers (1)
  1. 19 August, 21:35
    0
    Journal Entry

    Explanation:

    The Journal entry is shown below:-

    Cash Dr, $332,746

    To Bonds payable $290,000

    To premium of the issue on bonds $42,746

    (Being bonds issued for cash premium is recorded)

    Working note

    Selling price of bonds = $290,000 * 114.75%

    = $332,746
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Garcia company issues 8.00%, 15-year bonds with a par value of $290,000 and semiannual interest payments. on the issue date, the annual ...” 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