Bonds with a face value of $400,000 were issued at 102. The entry to record the issuance will include a debit to the Cash account for

Name: Bonds with a face value of $400,000 were issued at 102. The entry to record the issuance will include a debit to the Cash account for
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Question

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When bonds are issued at 102, it means they are issued at 102% of their face value. Therefore, to find the amount of cash received, you multiply the face value ($400,000) by 102%, which equals $408,000.

Bonds with a Face Value of $400,000 Were Issued at 102