Bangalor Company Issues Rs10,000,000, 8%, 10-Year Bonds at 96

question 93

Multiple Choice

Bangalor Company issues Rs10,000,000, 8%, 10-year bonds at 96.5 on July 1, 2011.Interest is paid on July 1 and January 1.The journal entry to record the issuance will include

• A)a debit to cash for Rs10,000,000
• B)a credit to cash for Rs9,650,000
• C)a debit to discount on bonds payable for Rs350,000
• D)a credit to bonds payable for Rs9,650,000