Problemsj corporation issues 800 10-year 8 1000 bonds dated, Ask an Expert

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Problem:

SJ Corporation issues 800, 10-year, 8%, $1,000 bonds dated January 1, 2012, at 96. The journal entry to record the issuance will include:

Debit to Cash of $800,000.
Debit to Discount on Bonds Payable for $32,000.
Credit to Bonds Payable for $768,000.
Credit to Discount on Bonds for $32,000.
Credit to Cash for $768,000.

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164947

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