Strauss Company sold $100,000 of long-term bonds in the open market for $100,000.The entry to record the transaction would be
A) DR Cash$\quad$$\quad$100,000
CR Bonds payable$\quad$100,000
B) DR Bonds payable$\quad$100,000
CR Cash$\quad$$\quad$100,000
C) DR Accounts payable$\quad$100,000
CR Bonds payable$\quad$$\quad$100,000
D) DR Cash$\quad$100,000
CR Interest payable$\quad$100,000

Question

Quizplus · Accepted Answer

When a company sells bonds at their face value, it debits Cash and credits Bonds Payable, reflecting the inflow of cash and the creation of a long-term liability.

Strauss Company Sold $100,000 of Long-Term Bonds in the Open \quad

Strauss Company Sold $100,000 of Long-Term Bonds in the Open $\quad$