Question

Concord Corporation has issued three different bonds during 2022. Interest is payable annually on each of these bonds On January 1, 2022, 1.500,6%, 5-year $1,000 bonds dated January 1, 2022, were issued at face value On July 1, $716,000,7%, 5-year bonds dated July 1 2022 were issued at 102. On September 1. $384.000,5%, 5-year bonds dated September 1, 2022. were issued at 98 1 2 3. Prepare the journal entry to record each bond transaction at the date of issuance. (Credit account titles are automatically indented when amount is entered. Do not indent manually) No. Date Account Titles and Explanation Debit Credit 1 2 a Sept 1

Answer 1

1. Jan 1: Cash $1,500,000, Bonds Payable $1,500,000.

2. Jul 1: Cash $731,320, Bonds Payable $700,000, Premium on Bonds Payable $31,320.

3. Sep 1: Cash $376,320, Discount on Bonds Payable $8,320, Bonds Payable $384,000.