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Question
On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105 . All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the issuance of the bonds on January 1, 2013?
A.
| Cash | 800,000 | |
| Bonds Payable | 800,000 |
B.
| Bonds Payable | 800,000 | |
| Cash | 800,000 |
C.
| Cash | 800,000 | |
| Bonds Payable | 772,000 | |
| Discount on Bonds Payable | 28,000 |
D.
| Cash | 772,000 | |
| Premium on Bonds Payable | 28,000 | |
| Bonds Payable | 800,000 |
E.
| Cash | 772,000 | |
| Discount on Bonds Payable | 28,000 | |
| Bonds Payable | 800,000 |
Answer
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
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Q:
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