Mendez Corporation issues 3,000, 10-year, 8%, $1,000 bonds dated January 1, 2010, at 103. The journal entry to record the issuance will show a

Name: Mendez Corporation issues 3,000, 10-year, 8%, $1,000 bonds dated January 1, 2010, at 103. The journal entry to record the issuance will show a
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The bonds are issued at 103, meaning they are issued at 103% of the face value. The premium is calculated as 3,000 bonds x $1,000 x 3% = $90,000, which is credited to Premium on Bonds Payable.

Mendez Corporation Issues 3,000, 10-Year, 8%, $1,000 Bonds Dated January