Question

on january 1, 2025, neighborhood credit union (ncu) issued 6%, 20 - year bonds payable with face value of $900,000. the bonds pay interest on june 30 and december 31

a. journalize the issuance of the bonds on january 1, 2025

Explanation:

When bonds are issued at face value (assuming no information about premium or discount is given), the cash received is equal to the face value of the bonds. Cash is an asset account that increases with a debit. Bonds Payable is a liability account that increases with a credit.

Answer:

Date	Accounts and Explanation	Debit	Credit
	Bonds Payable		$900,000