a-bond-with-a-face-value-of-200000-is-issued-at-110-what-is-the-journal-entry-fo

Question

A bond with a face value of $200,000 is issued at 110%. What is the journal entry for the issuance?

Accepted Answer

Debit Cash $$220,000, Credit Bonds Payable 200$$,000, Credit Premium on Bonds Payable $20,000

Answer

Debit Cash $$220,000, Credit Bonds Payable 220$$,000

Answer

Debit Cash $$200,000, Credit Bonds Payable 220$$,000, Debit Premium on Bonds Payable $20,000

Answer

Debit Cash $$200,000, Credit Bonds Payable 200$$,000, Credit Premium on Bonds Payable $20,000

A bond with a face value of \$200,000 is issued at 110%. What is the journal entry for the issuance?