I have a homework question for accounting that states, Asa Inc., issued $300,000 of 8-year, 7 percent bonds at 101. I have to state the cash proceeds and indicate whether the bond was sold at a premium or discount. Please help me on this question the book doesn't give me enough information to figure it out, and I have many more I need to do so this one would help out a lot. Thanks in advance!
If the sale price is $101 per $100 face value, it was issued at a premium. The cash proceeds from the issue was 1.01*$300,000 = $303,000.
Asa Receipt
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