Question 18 (2 points) Bond Corporation issues $$ 5,000,10 $$-year, $$ 8 \%, € 1,000 $$ bonds dated January 1, 2020, at 103 . The journal entry to record the issuance will show a

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To record the issuance of the bonds, we need to consider the following details:

- **Number of bonds issued**: 5,000
- **Face value of each bond**: €1,000
- **Coupon rate**: 8%
- **Issue price**: 103% of face value

First, we calculate the total cash received from the issuance of the bonds:

$$
\text{Total cash received} = \text{Number of bonds} \times \text{Face value} \times \text{Issue price}
$$

$$
\text{Total cash received} = 5,000 \times €1,000 \times 1.03 = 5,000 \times €1,030 = €5,150,000
$$

Next, we calculate the total face value of the bonds:

$$
\text{Total face value} = \text{Number of bonds} \times \text{Face value}
$$

$$
\text{Total face value} = 5,000 \times €1,000 = €5,000,000
$$

Since the bonds are issued at a premium (103% of face value), we need to record the premium on bonds payable:

$$
\text{Premium on bonds payable} = \text{Total cash received} - \text{Total face value}
$$

$$
\text{Premium on bonds payable} = €5,150,000 - €5,000,000 = €150,000
$$

Now, we can prepare the journal entry to record the issuance of the bonds:

**Journal Entry:**

- **Debit**: Cash €5,150,000
- **Credit**: Bonds Payable €5,000,000
- **Credit**: Premium on Bonds Payable €150,000

This journal entry reflects the cash received, the liability for the bonds payable, and the premium on the bonds.
The journal entry to record the issuance of the bonds will show a debit to Cash for €5,150,000, a credit to Bonds Payable for €5,000,000, and a credit to Premium on Bonds Payable for €150,000.

Question 18 (2 points) Bond Corporation issues \( 5,000,10 \)-year, \( 8 \%, € 1,000 \) bonds dated January 1, 2020, at 103 . The journal entry to record the issuance will show a

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