When bonds are issued at a discount,all of the following occurs,except
A)the cash account records a debit at less than face value.
B)there is a debit to a contra-liability account.
C)there is an adjustment made to terms of the issue.
D)bonds payable is recorded at face value.

Question

Quizplus · Accepted Answer

When bonds are issued at a discount, the terms of the issue are not adjusted; instead, the bond is sold for less than its face value, and this discount is amortized over the life of the bond.

When Bonds Are Issued at a Discount,all of the Following