Question

Oriole Company issues $270,000, 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
Cash
Bonds Payable 270,000
Premium on Bonds Payable

Answer 1

Step-by-step explanation:

Date Account titles and Explanation Debit Credit

Jun 01 Cash (270,000*102%) $275,400

Bonds payable $270,000

Premium on Bonds Payable $5,400

(to record the sale of these bonds)