medium · Financial Accounting accounting-cycle-financial-statements
A bond with a face value of 1,000 is issued at 103. The journal entry to record this issuance includes:
- A debit to Discount on Bonds Payable for 30.
- A credit to Interest Revenue for 30.
- A credit to Premium on Bonds Payable for 30.
- A debit to Cash for 1,000.
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