On January 1, 2010, Lukens Corporation issued 5-year bonds with a $50,000 face amount and a 6% annual coupon rate paid annually on January 1. The bonds were issued at $44,166 when the market rate of interest was 9%.
A. Prepare the journal entry to record the issuance of the bonds on January 1, 2010. Round to the nearest dollar.
B. Were the bonds issued at a premium or discount? How do you know?

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The Answer of On January 1, 2010, Lukens Corporation issued 5-year bonds with a $50,000 face amount and a 6% annual coupon rate paid annually on January 1. The bonds were issued at $44,166 when the market rate of interest was 9%.
A. Prepare the journal entry to record the issuance of the bonds on January 1, 2010. Round to the nearest dollar.
B. Were the bonds issued at a premium or discount? How do you know?

On January 1, 2010, Lukens Corporation Issued 5-Year Bonds with a $50,000