Question

A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and mature in 20 years. The journal entry when the bonds are sold is:

Answer 1

Answer: Please see explanation for answer

Step-by-step explanation:

Journal entry to record sale of bonds

Account titles Debit Credit

Cash $50,000,000

Bonds Payable $50,000,000