Miranda Corporation issued $200,000 of 12%,10-year bonds for $180,000.The entry to record the issuance of the bonds includes a:

Question

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The bonds were issued at a discount of $20,000 ($200,000 - $180,000). Therefore, the entry to record the issuance of the bonds includes a debit to Cash for $180,000, a credit to Bonds Payable for $200,000, and a credit to Discount on Bonds Payable for $20,000.

Miranda Corporation Issued $200,000 of 12%,10-Year Bonds for $180,000