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The journal to record a $1000,000 bond issued at 102 will include a) a debit to cash for $1000,000 and a credit to bonds payable for $1000,000. b) a debit to bonds payable for $1000,000 and a credit to cash for $1000,000. Oc) debits to cash for $980,000 and discount for $20,000 and a credit to bonds payable for $1000,000.

The journal to record a $1000,000 bond issued at 102 will include a) a debit to cash for $1000,000 and a credit to bonds payable for $1000,000. b) a debit to bonds payable for $1000,000 and a credit to cash for $1000,000. Oc) debits to cash for $980,000 and discount for $20,000 and a credit to bonds payable for $1000,000.

FINANCIAL ACCOUNTING
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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The journal to record a $1000,000 bond issued at 102 will include a) a debit to cash for $1000,000 and a credit to bonds payable for $1000,000. b) a debit to bonds payable for $1000,000 and a credit to cash for $1000,000. c) debits to cash for $980,000 and discount for $20,000 and a credit to bonds payable for $1000,000. O d) a debit to cash for $1,020,000 and credits to bonds payable for $1000,000 and premium $20,000.
Transcribed Image Text:The journal to record a $1000,000 bond issued at 102 will include a) a debit to cash for $1000,000 and a credit to bonds payable for $1000,000. b) a debit to bonds payable for $1000,000 and a credit to cash for $1000,000. c) debits to cash for $980,000 and discount for $20,000 and a credit to bonds payable for $1000,000. O d) a debit to cash for $1,020,000 and credits to bonds payable for $1000,000 and premium $20,000.
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