The journal entry a company makes for the issuance of bonds when the contract rate is less than the market rate would beOa. debit Cash and Discount on Bonds Payable, credit Bonds PayableOb. debit Cash, credit Bonds PayableOc. debit Cash, credit Premium on Bonds Payable and Bonds PayableOd. debit Bonds Payable, credit Cash

When the contract rate is less than the Market rate , the bonds are issued at discount.

Answered: he journal entry a company makes for…

he journal entry a company makes for the is a. debit Cash and Discount on Bonds Payable, cred Ob. debit Cash, credit Bonds Payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

The journal entry a company makes for the issuance of bonds when the contract rate is less than the market rate would be
Oa. debit Cash and Discount on Bonds Payable, credit Bonds Payable
Ob. debit Cash, credit Bonds Payable
Oc. debit Cash, credit Premium on Bonds Payable and Bonds Payable
Od. debit Bonds Payable, credit Cash

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