Suppose I purchase $600,000 of 6% bonds of Company X, Inc., for 105 on Feb. 23...
How would I record the extra 5% paid for the bonds in an accounting journal?
Like this?:
Bond investment 600,000 Debit
????? 50,000 Debit
Cash 650,000 Credit
If so, what is the "?????" to be called? paid-in-capital... in excess of what? And do I include the 5% for interest payments?
OR like this?:
Bond investment 650,000 Debit
Cash 650,000 Credit
PS...excuse the Y! Answers formatting.
2007-02-23
12:21:45
·
4 answers
·
asked by
Rush_Informer01
2
in
Investing