Date | General Journal | Debit | Credit |
March 1, 2014 | Cash | $10,980,500 | |
Premium on bonds payable | $980,500 | ||
Bonds payable | $10,000,000 | ||
( To record issuance of bonds on premium) |
Par value of bonds = $10,000,000
Issue price = $10,980,500
Premium on bonds payable = Issue price- Par value of bonds
= 10,980,500-10,000,000
= $980,500
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