Ask Question
BusinessBusiness
6 May, 00:58

Totito Inc. issues $100,000 face amount bonds at $98,000. The journal Totito Inc. issues $100,000 face amount bonds at $98,000. The journal entry to record the issuance should include:entry to record the issuance should include:

+1
Answers (1)
  1. 6 May, 01:05
    0
    Dr. Cash $98,000

    Dr. Discount on Bond $2,000

    Cr. Bond payable $100,000

    Explanation:

    If the bonds are issued at a price below the face value then the bonds are issued on a discounted value. The difference between face value and issuance value is known as discount. This discount is recorded separately and amortized over bond's life.

    As per given data

    Face value = $100,000

    Issuance value = $98,000

    Discount = $100,000 - $98,000 = $2,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Totito Inc. issues $100,000 face amount bonds at $98,000. The journal Totito Inc. issues $100,000 face amount bonds at $98,000. The journal ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
John owns 100 shares of XYZ Corporation's common stock. The stock has a par value of $10 per share and is currently selling for $50 per share. XYZ declares a 25% stock dividend. In a perfect capital market, after the dividend John will have: a.
Answers (1)
For the year ended December 31, year 5, Pering Co. reported pretax financial income of $550,000. Its current tax expense was $144,000. Pering reported a difference between pretax financial statement income and taxable income.
Answers (1)
Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in:
Answers (1)
If the Fed wanted to expand the money supply as part of an antirecession strategy, it coulda. increase the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans. b.
Answers (1)
Select the correct answer. What kind of advantage are you likely to enjoy in a partnership? A. higher liability than in sole ownership B. ability to raise capital from the market C. greater decision-making freedom than a sole trader D.
Answers (1)
New Questions in Business
Your parents surprise you with a $500 check. As a result, the U. S. GDP decreases because you have to pay taxes on this income. increases because this is unexpected income to you. remains unchanged because it was counted when your parents earned it.
Answers (1)
Motorcycle Manufacturers, Inc., projected sales of 57,400 machines for the year. The estimated January 1 inventory is 6,890 units, and the desired December 31 inventory is 7,240 units. The budgeted production for the year is?
Answers (1)
ewok enterprises recently elected the fair value option to account for its investment in yoda inc. ewok purchased the shares for 21000 and the shares are currently trading for 190000 at year end.
Answers (1)
The General Fund of a city pays all utility bills received from private companies for services provided to city agencies. It then bills other funds for their shares of the bills. On May 10, the General Fund pays an electric bill for $230,000.
Answers (1)
On November 10 of the current year, Flores Mills sold carpet to a customer for $8,500 with credit terms 2/10, n/30. Flores uses the gross method of accounting for sales discounts.
Answers (1)
Home » Business » Totito Inc. issues $100,000 face amount bonds at $98,000. The journal Totito Inc. issues $100,000 face amount bonds at $98,000. The journal entry to record the issuance should include:entry to record the issuance should include:
Sign Up Forgot Password?