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Gomez Corporation Issues 2,000, 10-Year, 8%, $1,000 Bonds Dated January

Question 113

Multiple Choice

Gomez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2010, at 98. The journal entry to record the issuance will show a


A) debit to Cash of $2,000,000.
B) credit to Discount on Bonds Payable for $40,000.
C) credit to Bonds Payable for $1,960,000.
D) debit to Cash for $1,960,000.

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