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On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face...

On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face value. On the other hand, the same company sells 108.111% of face value on July 1, 2017. Pass the necessary journal entry for issuance of bonds. On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face value. On the other hand the same company sells 108.111% of face value on July 1, 2017. Pass the necessary journal entry for issuance of bonds.

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Answer #1
Debit Credit
Jan-1-2017 Cash 92639 =100000*92.639%
Discount on Bonds Payable 7361
         Bonds Payable 100000
(To record sale of bonds at a discount)
July-1-2017 Cash 108111 =100000*108.111%
         Bonds Payable 100000
         Premium on Bonds Payable 8111
(To record sale of bonds at a premium)
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