Gomez Corporation issues 900, 10-year, 8%, $1,000 bonds dated January 1, 2020, at 96.The journal entry to record the issuance will show a
A)debit to Cash of $900,000.
B)credit to Discount on Bonds Payable for $36,000.
C)credit to Bonds Payable for $864,000.
D)debit to Cash for $864,000.

Question

Quizplus · Accepted Answer

The Answer of Gomez Corporation issues 900, 10-year, 8%, $1,000 bonds dated January 1, 2020, at 96.The journal entry to record the issuance will show a
A)debit to Cash of $900,000.
B)credit to Discount on Bonds Payable for $36,000.
C)credit to Bonds Payable for $864,000.
D)debit to Cash for $864,000.

Gomez Corporation Issues 900, 10-Year, 8%, $1,000 Bonds Dated January