The Hayden Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 92. The journal entry to record the issuance will show a
A) credit to Discount on Bonds Payable for $160,000
B) debit to Cash of $2,000,000
C) credit to Bonds Payable for $2,000,000
D) credit to Cash for $1,840,000

Question

Quizplus · Accepted Answer

Credit to Bonds Payable = Face value of bond × Number of bonds = $2,000 × 1,000 = $2,000,000
The journal entry to record the issuance will show a credit to Bonds Payable for $2,000,000.

The Hayden Corporation Issues 1,000, 10-Year, 8%, $2,000 Bonds Dated