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On January 1, 2019, Providence, Inc., issues $1,000,000 of 10 percent, 5-year bonds at par value. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Respuesta :

hyderali230

Answer:

                                   Dr.                Cr.

January 1, 2019

Cash                     $1,000,000

Note Payable                             $1,000,000

Explanation:

Bond issued for $1,000,000 and cash received against it. So, cash id debited and a liability is created in this event. Interest accrued will be charged as interest expense at the end of period.

hurryburning

Answer:

No Date General Journal   Debit        Credit

1 Jan 01 Cash                  1,000,000

                          Bonds payable                 1,000,000

Explanation:

Providence, Inc., issues $1,000,000 of bonds at par value means that the bonds are sold at par value.

The entry to record the issuance includes a debit to Cash for $1,000,000 and a credit to Bonds Payable for $1,000,000.

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