Journal Entries for Bonds at Par
Lesson:
There are three basic transactions that involve bonds:
- Issuing a bond
- Paying the interest on the bond (often yearly)
- Retiring the bond
This module will let you practice each of the above on a bond sold at face value.
As an auditor, you're trying to make sense of a firm's finances, but you're having trouble figuring something out.
What is the journal entry for the initial sale of the bond?
Answer:
-
Cash $81,000.00 Bonds Payable $81,000.00