On January 1, 2016, Mendez Company issued 400 of its $1,000, ten-year, 9% bonds. The bonds were dated January 1, 2016, and interest is paid annually each December 31. The bonds were issued at 99.
Required:
Part A: Prepare the entry to record the issuance of the bonds on January 1, 2016:
Part B: Were the bonds issued at par, at a premium, or at a discount? How did you arrive at your answer?

Question

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The Answer of On January 1, 2016, Mendez Company issued 400 of its $1,000, ten-year, 9% bonds. The bonds were dated January 1, 2016, and interest is paid annually each December 31. The bonds were issued at 99.
Required:
Part A: Prepare the entry to record the issuance of the bonds on January 1, 2016:
Part B: Were the bonds issued at par, at a premium, or at a discount? How did you arrive at your answer?

On January 1, 2016, Mendez Company Issued 400 of Its