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Carla Vista Co. issues $290,000, 20-year, 9% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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These bonds issued by Carla Vista at 103 with par value $290,000 with a 20 year maturity period will be recorded as:

Date                Account title                                     Debit                 Credit

June 1, 2022   Cash                                             $298,700

                        Bonds Payable                                                      $290,000

                        Premium on Bonds Payable                                   $  8,700

How do we record the sale of bonds?

First find the cash which is:

= Par value x 103

= 290,000 x 103/100

= $298,700

The Premium will be:

= Cash - Par value

= 298,700 - 290,000

= $8,700.

Find out more on recording bond issuance at https://brainly.com/question/16048929.

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