Accounting help plz !!help help?

Question

On june 1, 20xx, halo corporation issued bonds with a face value of $500,000. The bonds carry a face interest rate of 10% that is payable each july 1 and january 1.

a. Prepare the entry in journal form for the issuance assuming the bonds are issued at 97.

b. Prepare the entry in the journal form for the issuance assuming the bonds are issued at 102.

Answer 1

1. I assume teecher ask yu how much munee the kumpanee get wen it sell the bonds.

Sell at 97 meen the bier pae 97 sents on 100...kumpany get 97% av faes

=485,000$

If sale at 102, kumpanee get 510,000$

Answer 2

a. Prepare the entry in journal form for the issuance assuming the bonds are issued at 97.

Dr  Cash $485,000

Dr  Bonds discount $15,000

Cr  Bonds payable $500,000

b. Prepare the entry in the journal form for the issuance assuming the bonds are issued at 102.

Dr  Cash $510,000

Cr  Bonds premium $10,000

Cr  Bonds payable $500,000