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19 March, 05:03

Sheridan Company issues $280,000, 20-year, 10% bonds at 102. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Enter an account title enter a debit amount enter a credit amount Enter an account title enter a debit amount enter a credit amount Enter an account title enter a debit amount enter a credit amount

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  1. 19 March, 07:32
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    Dr Cash 285,600

    Cr Bonds payable 280,000

    Cr Premium on bonds payable 5,600

    Explanation:

    Sheridan Company Journal entry

    Dr Cash 285,600

    Cr Bonds payable 280,000

    Cr Premium on bonds payable 5,600

    Par value of bonds * Issue price of bonds

    = $280,000 x 102%

    =$280,000*1.02

    = $285,600
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