Answer:
Bonds payable Dr $50,000
To cash Cr $50,000
Explanation:
Debit to bonds payable in the amount of $50,000. Upon maturity, bonds payable will be debited by their face value of $50,000.
The premium received on bonds will be written off in phased manner over the life of the bonds. i.e $60,000 -50,000 = $10,000,
The Journal entry will be:
Date Account Title Debit Credit
Bonds payable $50,000
Cash $50,000
