The journal entry to record the issuance of bonds at a discount will include a
A)debit to Cash for the face amount of the bonds.
B)debit to Cash for the face amount of the bonds plus the amount of the discount.
C)debit to Cash for the face amount of the bonds minus the amount of the discount.
D)credit to Cash for the face amount of the bonds.

Question

Quizplus · Accepted Answer

When bonds are issued at a discount, the cash received is less than the face amount of the bonds. Therefore, the debit to Cash is for the face amount minus the discount.

The Journal Entry to Record the Issuance of Bonds at a Discount