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28 May, 21:37

On October 1, 2016, Flounder Corp. issued $780,000, 9%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31. Collapse question part (a) Correct answer. Your answer is correct. Prepare the journal entry to record the issuance of the bonds.

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  1. 28 May, 21:50
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    The journal entry is shown below:

    On October 1, 2016

    Cash A/c Dr $780,000

    To Bonds payable A/c $780,000

    (Being the issuance of the bonds are recorded)

    While recording we debited the cash account and credited the bond payable account so that the accurate posting can be done with the correct amount and correct item.

    The rate and time period is ignored
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