Four Thousand Bonds with a Face Value of $1,000 Each

Four thousand bonds with a face value of $1,000 each, are sold at 97. The entry to record the issuance is

A) Cash 3,880,000 Bonds Payable 3,880,000
B) Cash 3,880,000 Discount on Bonds Payable 120,000
Bonds Payable 4,000,000
C) Cash 3,880,000 Premium on Bonds Payable 120,000
Bonds Payable 4,000,000
D) Cash 4,000,000 Discount on Bonds Payable 120,000
Bonds Payable 3,880,000

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free