Gomez Corporation issues 600, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 96. The journal entry to record the issuance will show a
A) debit to Cash of $600,000.
B) credit to Discount on Bonds Payable for $24,000.
C) credit to Bonds Payable for $576,000.
D) debit to Cash for $576,000.

Question

Quizplus · Accepted Answer

The Answer of Gomez Corporation issues 600, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 96. The journal entry to record the issuance will show a
A) debit to Cash of $600,000.
B) credit to Discount on Bonds Payable for $24,000.
C) credit to Bonds Payable for $576,000.
D) debit to Cash for $576,000.

Gomez Corporation Issues 600, 10-Year, 8%, $1,000 Bonds Dated January