On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The bonds pay interest semiannually. The market rate of interest is 9.5% and the bond selling price was $2,143,712. The bond issuance should be recorded as: Multiple Choice Debit Cash $2.300,000; credit Bonds Payable $2,300,00o. Debit Cash $2143,712; credit Bonds Payable $2143,712. Debit Cash $2.300,000; credit Bonds Payable $2143,712: credit Discount on Bonds Payable $156,288 Debit Cash $2143,712; debit Discount on Bonds Payable $156.288; credit Bonds Payable $2,300,000. Debit Cash $2.143,712; debit Interest Expense $156,288; credit Bonds Payable $2,300,000.

On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The bonds pay interest semiannually. The market rate of interest is 9.5% and the bond selling price was $2,143,712. The bond issuance should be recorded as: Multiple Choice Debit Cash $2.300,000; credit Bonds Payable $2,300,00o. Debit Cash $2143,712; credit Bonds Payable $2143,712. Debit Cash $2.300,000; credit Bonds Payable $2143,712: credit Discount on Bonds Payable $156,288 Debit Cash $2143,712; debit Discount on Bonds Payable $156.288; credit Bonds Payable $2,300,000. Debit Cash $2.143,712; debit Interest Expense $156,288; credit Bonds Payable $2,300,000.

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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