Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing $ eTextbook and Media List of Accounts Your answer is partially correct. Account Titles and Explanation (DZ) Interest Expense Premium on Bonds Payable Interest Payable Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Total cost of borrowing $ 489600 Debit 20400 Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104. Credit 510000 Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually.
(a1)
Your answer is correct.
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
Account Titles and Explanation
Cash
Discount on Bonds Payable
Bonds Payable
Your answer is incorrect.
Compute the total cost of borrowing for these bonds.
Total cost of borrowing
eTextbook and Media
List of Accounts
- Your answer is partially correct.
Account Titles and Explanation
Interest Expense
(DZ).
Premium on Bonds Payable
$
Interest Payable
Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Total cost of borrowing
Debit
eTextbook and Media
$
489600
Debit
20400
Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104.
Credit
Credit
510000
Transcribed Image Text:Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing eTextbook and Media List of Accounts - Your answer is partially correct. Account Titles and Explanation Interest Expense (DZ). Premium on Bonds Payable $ Interest Payable Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Total cost of borrowing Debit eTextbook and Media $ 489600 Debit 20400 Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104. Credit Credit 510000
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