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Abigayle Donnelly

Nov 01, 2024

On january 1 of 2015, parson freight company issues 7%, 10-year bonds with a par value of $2,000,000. the bonds pay interest semi-annually.

On January 1, 2015, Parson Freight Company issued 7% bonds with a par value of $2,000,000 and a maturity period of 10 years. These bonds pay interest semi-annually. At the time of issuance, the market rate of interest was 8%, and the bonds were sold for $1,864,097. How should the bond issuance be recorded in the company’s financial statements?

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The bond issuance should be recorded as the bond issued with discount. There is a difference between the bond's par value and its selling price. If a bond sold below its par value, a discount will appear as the difference between them. For the journal entry, there will be a debit balance in cash account for $1,864,097, debit balance in the discount of the bond payable account for $ 135,903, and credit balance in the bond payable account for $2,000,000.
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Anonymous

Feb 19, 2025

answer; ///i believe that the correct answer is (a) it is the means by which a person earns money;
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Anonymous

Feb 04, 2025

answer: d. characteristics of guestsexplanation: it is directly related to the spending characteristics of attendees who fall into each of these categories:
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