The Freeman Corporation Issues 2,000, 10-Year, 8%, $1,000 Bonds Dated

question 9

Multiple Choice

The Freeman Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1 at 96. 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 $80,000
• C) credit to Bonds Payable for $1,920,000
• D) debit to Cash for $1,920,000

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