I'm trying to check my work on this study guide, the teacher did not provide us with answers. I was to make sure I have the right idea and am going to pass. thanks.
Webster Company issues $1,000,000 face value, 6%, 5-year bonds payable on December 31, 2009. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Webster uses the straight-line method of amortizing bond discount or premium.
Refer to the information above. The entry made by Webster Company to record issuance of the bonds payable at December 31, 2009, includes:
a. A debit to Cash of $1,000,000.
b. A debit to Discount on Bonds Payable of $30,000.
c. A credit to Bonds Payable of $970,000.
d. A credit to Bond Interest Payable of $30,000.
Webster Company issues $1,000,000 face value, 6%, 5-year bonds payable on December 31, 2009. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Webster uses the straight-line method of amortizing bond discount or premium.
Refer to the information above. The entry made by Webster Company to record issuance of the bonds payable at December 31, 2009, includes:
a. A debit to Cash of $1,000,000.
b. A debit to Discount on Bonds Payable of $30,000.
c. A credit to Bonds Payable of $970,000.
d. A credit to Bond Interest Payable of $30,000.