Oriole Company issues $200,000, 20-year, 9% bonds at 104. Prepare the journal entry to record the sale of these bonds on June 1, 2020

Dr Cash $208,000

Cr Bonds payable $200,000

Cr Premium on bonds payable $8,000

Explanation:

Preparation of the journal entry to record the sale of these bonds on June 1,

Based on the information given we were told that the company issues the amount of $200,000 at 104 which means the that the journal entry to record the sale of these bonds on June 1 will be:

Dr Cash $208,000

(2,000 × $104)

Cr Bonds payable $200,000

(2,000 × $100)

Cr Premium on bonds payable $8,000

(2,000 ×$4)

Note:-

$200,000/100 =$2,000

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

answer; coefficient of correlation;