Blanding Company issues $1 000 000 of 8%, 10- year debentures at 98 on 28 February 2014. The debenture pays interest on 28 February and 31 August. The market rate of interest on the issue date was 10%. The journal entry to record the issue would include a:
A)credit to Discount on debentures payable for $20 000.
B)debit to Cash for $1 000 000.
C)debit to Cash for $980 000.
D)credit to Debentures payable for $980 000.

Question

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The Answer of Blanding Company issues $1 000 000 of 8%, 10- year debentures at 98 on 28 February 2014. The debenture pays interest on 28 February and 31 August. The market rate of interest on the issue date was 10%. The journal entry to record the issue would include a:
A)credit to Discount on debentures payable for $20 000.
B)debit to Cash for $1 000 000.
C)debit to Cash for $980 000.
D)credit to Debentures payable for $980 000.

Blanding Company Issues $1 000 000 of 8%, 10- Year