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 m 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 $2,300,000. Debit Cash $2,143,712; credit Bonds Payable $2,143,712. Debit Cash $2,300,000; credit Bonds Payable $2,143,712, credit Discount on Bonds Payable $156.288. Dohit Cach 2143 712 dahit Diernunt on Ronds Pavahle 156288 credir Ronde Pavahle 2300 000 Mc Graw Hill < Prev 9 of 10 Next > 96% Type here to search
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 m 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 $2,300,000. Debit Cash $2,143,712; credit Bonds Payable $2,143,712. Debit Cash $2,300,000; credit Bonds Payable $2,143,712, credit Discount on Bonds Payable $156.288. Dohit Cach 2143 712 dahit Diernunt on Ronds Pavahle 156288 credir Ronde Pavahle 2300 000 Mc Graw Hill < Prev 9 of 10 Next > 96% Type here to search
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 marke
rate of interest is 9.5% and the bond selling price was $2,143,712. The bond issuance should be recorded as:
Multiple Choice
22
Debit Cash $2,300,000; credit Bonds Payable $2,300,000.
Debit Cash $2143,712; credit Bonds Payable $2,143,712.
Debit Cash $2,300,000; credit Bonds Payable $2,143,712: credit Discount on Bonds Payable $156,288.
Nohit Cach 2143712 dehit Diecount on Ronds Pavahle $156.288 crerdit Ronds Pavahle 2 300 000
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Transcribed Image Text: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 marke
rate of interest is 9.5% and the bond selling price was $2,143,712. The bond issuance should be recorded as:
Multiple Choice
22
Debit Cash $2,300,000; credit Bonds Payable $2,300,000.
Debit Cash $2143,712; credit Bonds Payable $2,143,712.
Debit Cash $2,300,000; credit Bonds Payable $2,143,712: credit Discount on Bonds Payable $156,288.
Nohit Cach 2143712 dehit Diecount on Ronds Pavahle $156.288 crerdit Ronds Pavahle 2 300 000
Mc
Graw
Hill
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9 of 10
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9:12 P
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3/21/20
![Multiple Choice
Debit Cash $2,300,000; credit Bonds Payable $2,300,000.
Debit Cash $2,143,712; credit Bonds Payable $2,143,712.
Debit Cash $2,300,000; credit Bonds Payable $2,143,712; credit Discount on Bonds Payable $156,288.
Debit Cash $2,143,712; 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa070c63d-ffab-4165-ad73-2a874c3e3965%2Fdd53acd1-855d-427a-8076-11ec83561447%2Fqihg5od_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Multiple Choice
Debit Cash $2,300,000; credit Bonds Payable $2,300,000.
Debit Cash $2,143,712; credit Bonds Payable $2,143,712.
Debit Cash $2,300,000; credit Bonds Payable $2,143,712; credit Discount on Bonds Payable $156,288.
Debit Cash $2,143,712; 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.
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