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Bramble Corp. issues 4200, 10-year, 8%, $1000 bonds dated January 1, 2017, at 97. The journal...

Bramble Corp. issues 4200, 10-year, 8%, $1000 bonds dated January 1, 2017, at 97. The journal entry to record the issuance will show a

A) credit to Cash for $4074000.

B) debit to Cash of $4200000.

C) credit to Bonds Payable for $4074000.

D)debit to Discount on Bonds Payable for $126000.

Solutions

Expert Solution

Correct answer-----------(D) debit to Discount on Bonds Payable for $126000.

Working

Complete entry will be as follows

Account Title and Explanation Debit Credit
Cash $ 4,074,000
Discount on bonds payable $ 126,000
Bonds payable $ 4,200,000
(To record Issuance of bonds )

ekkarill92 answered 1 year ago
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