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Sale of Stock with Bonds

Instructions X

General Journal Shaded cells have feedback. X

Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on
PAGE 1
December 31.
GENERAL JOURNAL Score: 61/61
Required:
DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
Record the transaction
✔ for each independent assumption shown: ✔ ✔
1 Dec. 31 Cash   23,000.00
1.2 The common stock has a current market ✔ of the bonds is not known.
value of $21 per share; the market value ✔
Discount on Bonds Payable   800.00
2. The common stock has a current market value of $24.50 per share; the bonds ✔
are selling at 98. ✔
3 Common Stock   6,000.00
✔ ✔
4 Additional Paid-in Capital on Common Stock   7,800.00
✔ ✔
5 Bonds Payable   10,000.00

Points: 11 / 11

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