Bangalor Company issues Rs10,000,000, 8%, 10-year bonds at 96.5 on July 1, 2011.Interest is paid on July 1 and January 1.The journal entry to record the issuance will include

Question

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The bonds are issued at a discount, so the cash received is less than the face value of the bonds. The difference between the cash received and the face value of the bonds is recorded as a discount on bonds payable.

Bangalor Company Issues Rs10,000,000, 8%, 10-Year Bonds at 96