Pace Company Issued Bonds with a Face Value of $200,000

question 33

Multiple Choice

Pace Company issued bonds with a face value of $200,000 at 97.How does the issuance affect the company's accounting equation?

• A)Assets and liabilities would both increase by $200,000.
• B)Assets and liabilities would both increase by $194,000.
• C)Assets would increase by $194,000 and liabilities would increase by $200,000.
• D)Assets would increase by $200,000,and liabilities would increase by $194,000.

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