The sale and issuance of $400,000, 8% bonds with a market rate of 8% would involve debiting Cash for

Name: The sale and issuance of $400,000, 8% bonds with a market rate of 8% would involve debiting Cash for
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The issuance of the $400,000 bonds at par value would result in a debit to Cash for the same amount. The market rate being 8% (the same as the bond's stated rate) indicates that the bonds were issued at face value (par), hence the full amount of $400,000 would be received in cash.

The Sale and Issuance of $400,000, 8% Bonds with a Market