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Splish Brothers Inc. issues $268,000, 10-year, 7% bonds at 97. Prepare the journal entry to record the sale of these bonds on March 1, 2022.

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abiolataiwo2015

The  journal entry to record the transaction is: Debit Cash $259,960; Debit Discount on bonds payable $8,040;Credit Bonds payable  $268,000.

Sales of bonds

Splish Brothers Inc journal entry

March 1,2022

Debit Cash $259,960

($268,000 × 97%)

Debit Discount on bonds payable $8,040

($268,000 × 3%)

Credit Bonds payable  $268,000

(To record sales of bonds)

Inconclusion the entry is: Debit Cash $259,960; Debit Discount on bonds payable $8,040;Credit Bonds payable  $268,000.

Learn more about sales of bonds here:https://brainly.com/question/13958571

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