Yanik Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 97. The journal entry to record the issuance will show a

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The bonds are issued at 97, meaning they are issued at 97% of the face value. The discount on bonds payable is calculated as the difference between the face value ($5,000,000) and the cash received ($4,850,000), which is $150,000.

Yanik Corporation Issues 5,000, 10-Year, 8%, $1,000 Bonds Dated January