The Entry Made by Webster Company to Record Issuance of the Bonds

question 136

Multiple Choice

The entry made by Webster Company to record issuance of the bonds payable at December 31, 2011, includes:

• A) A debit to Cash of $1,000,000.
• B) A debit to Discount on Bonds Payable of $30,000.
• C) A credit to Bonds Payable of $970,000.
• D) A credit to Bond Interest Payable of $30,000.