The Journal Entry to Record the Issue of Bonds at a Discount

question 110

Multiple Choice

The journal entry to record the issue of bonds at a discount will include a

• A)debit to Cash for the face amount of the bonds.
• B)debit to Cash for the face amount of the bonds plus the amount of the discount.
• C)debit to Cash for the face amount of the bonds minus the amount of the discount.
• D)credit to Cash for the face amount of the bonds.
• Use the information below to answer questions 111-113.
• Sail and Sink Inc.issues $425,000 of 6%, 5-year bonds for cash proceeds of $390,529.The market interest rate is 8%.Interest is paid semi-annually.