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McDonald Sales Prepared a Bond Issue of $20,000 Dated January

Question 106

Multiple Choice

McDonald Sales prepared a bond issue of $20,000 dated January 1,2013.The bonds have a stated rate of 3% and a term of 6 years.The bond issue was delayed,and the bonds were finally sold on March 1,2013 at par.The journal entry to record the issuance of the bonds on March 1,2013 will include which of the following?


A) Credit to Interest payable of $100
B) Credit to Bonds payable for $20,100
C) Debit to Cash for $20,300
D) Credit to Cash for $20,110

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