On October 1, 2020 Sheffield Corp. issued 6%, 10-year bonds with a face value of $8010000 at 104. Interest is paid October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of $320400 to Premium on Bonds Payable. debit of $320400 to Discount on Bonds Payable. credit of $7689600 to Bonds Payable.

On October 1, 2020 Sheffield Corp. issued 6%, 10-year bonds with a face value of $8010000 at 104. Interest is paid October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of $320400 to Premium on Bonds Payable. debit of $320400 to Discount on Bonds Payable. credit of $7689600 to Bonds Payable.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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