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Bryant Inc. issues 10-year bonds with a face value of $8,000,000 and a stated annual interest...

  1. Bryant Inc. issues 10-year bonds with a face value of $8,000,000 and a stated annual interest rate of 2%. The bonds pay interest annually on December 31. The annual market rate of interest on the date of issue is 3%. Provide the journal entry that the company will make to record the bond issue.
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Answer #1
Date Account titles & Explanations Debit Credit
1/1/2020 Cash 7,317,552
Discount on bonds 682,448
bonds payable 8,000,000

working

(note there will be slight difference in issue price calculation ,kindly use the factors as given
inn your question to get exact answer)
Bond characterstics Amount
1-a) Principal 8,000,000
interest            160,000
Market interest rate 3%
periods to maturity 10
issue price 7,317,552
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