Question

journal entry worksheet
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record the issuance of bonds for cash on january 1.
note: enter debits before credits.
date general journal debit credit
january 01
record entry clear view general journal
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Explanation:

Step1: Identify the transaction

The transaction is the issuance of bonds for cash. When a company issues bonds for cash, it receives cash (an asset increase) and incurs a liability (bonds payable) for the amount of the bonds.

Step2: Determine debit and credit accounts

• Debit: Cash (because cash is received, increasing the asset account. Assets are debited when increased).
• Credit: Bonds Payable (because the company has a liability to pay back the bondholders, increasing the liability account. Liabilities are credited when increased).

Step3: Enter the journal entry

On January 01, the general journal entry would be:

• Date: January 01
• General Journal: Cash (debit) and Bonds Payable (credit)
• Debit amount: The amount of cash received (let's assume the face value of bonds is $X$, so debit Cash for $X$)
• Credit amount: Credit Bonds Payable for $X$ (the amount of bonds issued)

Answer:

Date	General Journal	Debit	Credit
January 01	Bonds Payable		$X$

(Where $X$ is the face value or the issue price of the bonds. If issued at par, $X$ is the par value; if issued at a premium or discount, adjust the accounts accordingly, but for a basic issuance at par, this is the entry.)