Sweetwater Company sells $100,000 of 10%, 15 year bonds for 97 on April 1, 20X1. The market rate of interest on that day is 10 1/2%. Interest is paid each year on April 1. The entry to record the sale of the bonds on April 1 would be.
|
Cash |
97,000 |
|
|
Bonds Payable |
97,000 |
|
|
Cash |
100,000 |
|
|
Bonds Payable |
100,000 |
|
|
Cash |
97,000 |
|
|
Discount on Bonds Payable |
||
|
Bonds Payable |
100,000 |
|
|
Cash |
100,000 |
|
|
Discount on Bonds Payable |
3,000 |
|
|
Bonds Payable |
97,000 |