Riverbed Corp issues 940, 10-year, 8%, $1000 bonds dated January 1, 2020, at 96. The journal entry to record the issuance will show a: credit to Discount on Bonds Payable for $37600. credit to Bonds Payable for $902400. debit to Cash of $940000. debit to Cash for $902400.

Riverbed Corp issues 940, 10-year, 8%, $1000 bonds dated January 1, 2020, at 96. The journal entry to record the issuance will show a: credit to Discount on Bonds Payable for $37600. credit to Bonds Payable for $902400. debit to Cash of $940000. debit to Cash for $902400.

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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Question

Riverbed Corp issues 940, 10-year, 8%, $1000 bonds dated January 1, 2020, at 96. The journal entry to record the issuance will show a:

credit to Discount on Bonds Payable for $37600.

credit to Bonds Payable for $902400.

debit to Cash of $940000.

debit to Cash for $902400.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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