question archive Bonds with a face amount $1,000,000, are sold at 98
Bonds with a face amount $1,000,000, are sold at 98
Subject:AccountingPrice:2.87 Bought7
Bonds with a face amount $1,000,000, are sold at 98. The entry to record the issuance is
a. Cash 980,000 Bonds Payable 980,000
b. Cash 980,000 Premium on Bonds Payable 20,000 Bonds Payable 1,000,000
c. Cash 1,000,000 Premium on Bonds Payable 20,000 Bonds Payable 980,000
d. Cash 980,000 Discount on Bonds Payable 20,000 Bonds Payable 1,000,000
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Answer is D
| General Journal | Debit | Credit |
| Cash($1,000,000 * 0.98) | $980,000 | |
| Discount on Bonds Payable | $20,000 | |
| Bonds Payable | $1,000,000 |
